Trucking Industry Terms, Definitions, and Abbreviations

Navigating the trucking industry can often feel like learning a new language. With its unique jargon and specialized terms, understanding the key terminology is crucial for anyone involved in or entering the field. Whether you’re a seasoned driver, a new owner-operator, a logistics coordinator, or simply curious about the industry, having a clear grasp of trucking vocabulary can enhance your efficiency and communication.

In this comprehensive glossary, we’ll demystify the most common and essential terms used in the world of freight and transportation, providing you with a valuable resource to reference as you drive forward in your trucking career.

General Terms

• Freight: Goods transported in bulk by truck, train, ship, or aircraft.
• Load: The cargo being transported.
• Deadhead: Driving a truck with an empty trailer.
• Deadhead Origin: Driving a truck with an empty trailer to the pickup point.
• Deadhead Destination: Driving a truck from the drop-off location back to the terminal.
• Backhaul: Return trip with a load, typically at a reduced rate compared to the outbound trip.
• Linehaul: The movement of freight between cities or major hubs.
• LTL (Less Than Truckload): Freight shipment that does not require a full trailer.
• FTL (Full Truckload): Freight shipment that fills an entire trailer.
• P&D (Pickup and Delivery): The local collection and delivery of freight.

Abbreviations and Acronyms

• DOT: Department of Transportation
• FMCSA: Federal Motor Carrier Safety Administration
• MC: Motor Carrier
• USDOT: United States Department of Transportation
• CSA: Compliance, Safety, Accountability (a program of FMCSA)
• IRP: International Registration Plan
• IFTA: International Fuel Tax Agreement
• EOBR: Electronic Onboard Recorder
• ELD: Electronic Logging Device
• BOL: Bill of Lading
• COI: Certificate of Insurance
• W-9: IRS form used to request taxpayer identification number and certification
• OS&D: Over, Short, and Damaged
• TWIC: Transportation Worker Identification Credential
• CARB: California Air Resources Board
• TSA: Transportation Security Administration
• TMS: Transportation Management System
• OTR: Over the Road

Documents and Forms

• Bill of Lading (BOL): A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being carried.
• Carrier Agreement: Contract between a carrier and another party (dispatcher, broker) detailing terms of service.
• Certificate of Insurance (COI): A document providing evidence of insurance coverage.
• MC Authority: A license issued by the FMCSA allowing a company to transport goods across state lines.
• W-9 Form: A form used to provide a taxpayer identification number.
• Rate Confirmation: Document from a broker to a carrier confirming the agreed rate for hauling a specific load.
• Trip Sheet: A record of miles driven and states traveled for reporting and tax purposes.
• Delivery Receipt: A document signed by the consignee acknowledging the delivery of goods.
• CARB Card: A card showing compliance with California’s emissions regulations.
• TWIC Card: A credential for workers who need access to secure areas of the nation’s maritime facilities.

Permits and Licenses

• CDL (Commercial Driver’s License): A license required to operate large or heavy vehicles.
• IRP (International Registration Plan): A registration reciprocity agreement among states of the US and provinces of Canada providing payment of license fees based on fleet distance operated.
• IFTA (International Fuel Tax Agreement): An agreement among US states and Canadian provinces to simplify the reporting of fuel use by motor carriers operating in multiple jurisdictions.
• Oversize/Overweight Permits: Permits required for vehicles exceeding standard legal size and weight limits.
• Hazmat Endorsement: An endorsement on a CDL required to transport hazardous materials.
• TWIC (Transportation Worker Identification Credential): A security credential issued by TSA for workers requiring access to secure areas of maritime facilities.

Industry Roles

• Carrier: A company or individual responsible for transporting goods.
• Owner-Operator: A self-employed truck driver who owns and operates their truck.
• Dispatcher: A person who schedules and coordinates the pickup and delivery of freight.
• Broker: An intermediary who arranges transportation of goods by connecting shippers with carriers.
• Shipper: The party that needs to transport goods.
• Consignee: The recipient of the freight.
• 3PL (Third-Party Logistics): Companies that provide outsourced logistics services.

Truck and Equipment Terms

• Tractor: The front part of a truck, which houses the engine and cab, that pulls the trailer.
• Trailer: The container hauled by the tractor, which carries the freight.
• Power Only: A tractor (truck) without a trailer. 
• Dry Van: A standard enclosed trailer used for transporting general freight.
• Reefer: A refrigerated trailer used for transporting perishable goods.
• Flatbed: An open trailer used for transporting large or awkwardly shaped items.
• Box Truck: A medium to large truck with a fully enclosed cargo area, often used for local and regional deliveries of smaller loads.
• Sprinter Van: A type of cargo van manufactured by Mercedes-Benz and Dodge, known for its relatively compact size and versatility for transporting smaller loads or serving as a mobile workshop.
• Hot Shot: A small truck or pickup truck typically equipped with a flatbed trailer, used for transporting urgent or time-sensitive freight over short to medium distances.
• Tandem Axle: A pair of axles spaced closely together, providing greater load-carrying capacity.
• Fifth Wheel: The coupling device on the tractor that connects to the trailer.
• PJ (Pallet Jack): A manual tool used to lift and move pallets.
• LG (Lift Gate): A hydraulic or electric platform at the back of a truck used for loading and unloading heavy items.

Operational Terms

• Detention: The time a driver spends waiting at a shipper or consignee beyond the allotted free time.
• Layover: When a driver must wait overnight for a load.
• Lumper: A person hired to load or unload freight from a trailer.
• Dock: The platform where trucks are loaded and unloaded.
• Seal: A device used to secure the doors of a trailer, ensuring the contents are not tampered with during transit.
• Blind Shipment: A shipment where the consignee is unaware of the shipper’s identity.
• Escort Fee: A fee paid for vehicles that provide escort services for oversized loads.
• Truck Endorsement: Special qualifications on a CDL allowing the driver to operate specific types of vehicles.

Terms Used on Load Boards and TMS

• Load Board: An online platform where shippers and brokers post loads that need to be hauled, and carriers can find available freight.
• TMS (Transportation Management System): Software that helps plan, execute, and optimize the physical movement of goods.
• Spot Market: A market for immediate, one-time freight transactions, often found on load boards.
• Lane: A specific route or corridor frequently traveled by trucks.
• Freight Rate: The price at which cargo is transported from one point to another.
• Capacity: The availability of trucks in a given market to carry freight.
• Brokerage Fee: The fee charged by a broker for arranging transportation services.

Billing Terms

• Freight Bill: A document detailing the charges associated with the transportation of goods, including the cost of shipping, any additional fees, and payment terms.
• Invoice: A bill sent by a service provider (broker, carrier, or dispatcher) to the shipper or consignee, requesting payment for services rendered.
• Rate Confirmation: A document from a broker to a carrier confirming the agreed-upon rate for hauling a specific load, often used as a reference for billing purposes.
• Accessorial Charges: Additional charges for services beyond standard transportation, such as detention, lumper fees, or reconsignment fees, which may be included on the freight bill or invoice.
• Payment Terms: The agreed-upon terms specifying when payment is due, such as Net 30 (payment due within 30 days) or COD (cash on delivery).
• Remittance: The process of sending payment from the shipper or consignee to the service provider (broker, carrier, or dispatcher) in response to an invoice or freight bill.

Factoring Terms

• Factoring: A financial transaction where a company (shipper, broker, carrier, or dispatcher) sells its accounts receivable (unpaid invoices) to a third-party financial institution (factoring company) at a discount. This provides the company with immediate cash flow, while the factoring company assumes the responsibility of collecting payment from the customers.
• Factoring Company: A financial institution that purchases accounts receivable (unpaid invoices) from businesses at a discount, providing them with immediate cash flow. The factoring company then assumes the responsibility of collecting payment from the customers (debtors) who owe the invoices.
• Factoring Agreement: The business enters into a factoring agreement with a factoring company. This agreement outlines the terms of the factoring arrangement, including the discount rate, advance rate, and other fees.
• Factor: The financial institution (factoring company) that purchases the accounts receivable from the company.
• Advance Rate: The percentage of the invoice amount that the factoring company advances to the company upfront, typically ranging from 70% to 90%.
• Reserve: The portion of the invoice amount that is held back by the factoring company until the customer pays the invoice in full. The reserve, minus any fees, is remitted to the company once payment is received.
• Recourse Factoring: A factoring arrangement where the company remains liable for unpaid invoices if the customer fails to pay.
• Non-Recourse Factoring: A factoring arrangement where the factoring company assumes the risk of non-payment by the customer. If the customer fails to pay, the factoring company absorbs the loss.
• Notification: The process of informing the customer (debtor) that their invoice has been sold to a factoring company and that payment should be made directly to the factoring company.

Understanding this extensive terminology is essential for effective communication and operation within the freight trucking industry.