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Freight glossary

Plain definitions of the terms freight brokers, carriers and shippers use every day, from BOL and TONU to BMC-84 and EDI 214. Regulatory facts are checked against FMCSA, eCFR and NMFTA sources.

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3PL (third-party logistics)
A company a shipper hires to handle outsourced logistics such as freight brokerage, warehousing, fulfillment, or managed transportation.

A

Accessorial charges
Fees for services or events beyond standard pickup and delivery, such as detention, liftgate, lumper, layover or TONU, billed on top of linehaul and fuel.

B

Backhaul
A load a truck carries on its return trip toward its home base, booked so the truck doesn't drive back empty.
Bill of lading
The document a carrier signs when it takes freight, serving as the receipt, the contract of carriage, and, for order bills, a document of title.
Bobtail
A semi tractor driving without a trailer attached, such as after dropping a trailer or on the way to hook the next one.
BOC-3
The FMCSA form that designates process agents who can accept court papers for a motor carrier, broker, or freight forwarder in required states.

C

Cargo insurance
Insurance that pays for loss of or damage to freight in a carrier's care, federally required only for household goods carriers but standard in broker contracts.
Carrier packet
The set of documents a carrier completes before a broker will book it: authority, insurance certificate, W-9, broker-carrier agreement, payment details and contacts.
Check call
A scheduled status update between a broker and a carrier or driver during a load, covering location, ETA, arrival, loading and delivery.
Cross-docking
Unloading freight from inbound trucks and reloading it onto outbound trucks at a dock, sorted by destination, with little or no storage time.

D

Deadhead miles
Miles a truck drives with an empty trailer, usually between a delivery and the next pickup, earning no revenue but costing fuel and driving hours.
Demurrage
A per-day charge for holding a container, terminal space, or rail car past the free time allowed, most common at ports and rail sidings.
Detention
A charge for holding a truck and driver at a pickup or delivery beyond the agreed free time, usually billed hourly.
Double brokering
Handing a brokered load to another carrier without the shipper's or broker's consent, or re-brokering freight without FMCSA broker authority.
Drayage
A short truck move that carries an ocean container or intermodal box between a port or rail ramp and a nearby warehouse, rail yard, or terminal.
Dry van
An enclosed, non-refrigerated trailer, usually 53 feet long, used to haul palletized or boxed freight that needs weather protection but no temperature control.

E

EDI 204
The X12 Motor Carrier Load Tender, an electronic message a shipper or broker sends to offer a specific shipment to a carrier.
EDI 214
The X12 Transportation Carrier Shipment Status Message, used to send a shipper electronic updates on a shipment's status, time and location.

F

Freight agent
An independent salesperson who books freight under a licensed broker's authority and bond, usually paid a commission split of each load's gross margin.
Freight broker bond (BMC-84)
The $75,000 financial security FMCSA requires of property brokers, filed as a BMC-84 surety bond or BMC-85 trust fund, available to pay valid claims.
Freight class
The NMFC rating, from 50 to 500, that LTL carriers use to price a shipment based on density, handling, stowability, and liability.
Freight factoring
Selling unpaid freight invoices to a factoring company that advances most of the amount now, collects from the customer, and keeps a fee.
FTL (full truckload)
A shipment that gets a dedicated truck and trailer, moving from shipper to receiver without terminal transfers and priced per load or per mile.

L

Linehaul
The movement of freight between cities or terminals, and the base rate for that move before fuel surcharge and accessorial charges.
Load tender
A shipper's formal offer of a specific shipment to a carrier or broker, which the carrier or broker accepts or rejects within a set window.
LTL (less-than-truckload)
Freight that doesn't fill a trailer, moved through a carrier's terminal network with other shippers' freight and priced by weight, class, lane, and accessorials.
Lumper fee
A charge from a warehouse or third-party crew for unloading a truck, usually paid at the dock and reimbursed against a receipt.

M

MC number
The docket number FMCSA assigns to a company's operating authority, required for for-hire interstate carriers, brokers, and freight forwarders alongside a USDOT number.

P

Power only
A move where the carrier supplies only the tractor and driver and pulls a trailer owned or leased by the shipper, broker or another company.
PRO number
The tracking and freight bill number a carrier assigns to a shipment, most often in LTL, used to trace the shipment and match the carrier's invoice.
Proof of delivery
The signed record, usually the delivery copy of the bill of lading, showing a shipment reached the receiver, when, in what condition, and who signed for it.

R

Rate confirmation
The signed, load-specific agreement between a freight broker and a carrier that sets the rate, stops, equipment, accessorial terms and payment terms for one shipment.

S

Spot rate
The market price to move a single load now, negotiated at booking and changing daily with capacity and demand, as opposed to a contract rate.

T

TONU (truck order not used)
A flat fee paid to a carrier when a load is canceled after the truck was dispatched or arrived, set by the rate confirmation.
Transloading
Moving freight from one mode or piece of equipment to another, such as from an ocean container or railcar into a domestic truck trailer.

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