Trucking Companies, Road Haulage Industry Terminology

Accessorial Charges

Fees for services beyond the base linehaul, such as liftgate, inside delivery, residential service, appointment scheduling, driver assist, and redelivery. Common in LTL and final-mile.

Quote excludes accessorials such as liftgate and inside delivery; We billed detention and redelivery as accessorials; Audit found unbilled accessorial charges on POs from last quarter.

ADR (European Agreement concerning the International Carriage of Dangerous Goods by Road)

The European framework governing the road transport of hazardous materials, specifying packaging, labeling, vehicle equipment, and driver training requirements.

The trailer must be ADR-compliant for Class 3 flammables; Driver renewal of ADR certification is due; Packaging and placarding are per ADR rules.

Axle Load

The weight carried by a single axle or axle group. Regulated to protect roads and bridges; managed by axle spacing and adjustable tandems.

Slide the tandems to balance the axle load; The scale ticket shows the steer axle load is near the limit; The bridge formula limits our axle loads on this route.

Backhaul

A load on the return leg toward a carrier’s home or origin market, typically priced lower than the headhaul direction.

We booked a backhaul to avoid deadhead from Dallas; Backhaul rates are weaker than headhaul; The RFP pairs lanes to create balanced headhaul and backhaul flows.

Bill of Lading (BOL)

The legal contract and receipt between shipper and carrier detailing origin, destination, contents, and terms. Can be straight or negotiable; functions as shipment documentation.

Make sure the BOL lists NMFC class and piece count; The signed BOL is our proof of pickup; Use the master BOL for consolidated LTL shipments.

Bobtail

Operating a tractor without a trailer attached. Changes handling and insurance exposure compared with running under load.

The driver will bobtail to the shipper; Bobtail braking dynamics differ from pulling a trailer; Ensure bobtail insurance coverage is in place.

Broker (Freight Broker)

A licensed intermediary that arranges transportation between shippers and motor carriers without taking possession of the freight.

The broker posted our load on the board; Our brokerage margin improved this quarter; Sign the broker-carrier agreement before tendering loads.

Cab-Over-Engine (COE)

Truck design with the cab positioned above the engine, offering maneuverability and shorter overall length.

COE tractors are common in European urban delivery; We chose COE for tighter turning radius; The COE design maximizes payload within length limits.

Cabotage

Domestic haulage performed by a foreign-registered carrier. Strictly limited and regulated, especially in the EU.

EU cabotage rules allow limited domestic moves after an international delivery; Verify cabotage compliance for foreign-registered trucks; The shipment was rejected due to cabotage violations.

CDL (Commercial Driver’s License)

A credential required to operate commercial motor vehicles in the U.S., with classes (A, B, C) and endorsements (H, N, T, X).

This route requires a Class A CDL; Add the hazmat endorsement to the driver’s CDL; CDL medical certificate renewal is due annually.

Consignee

The party receiving goods at destination. Often responsible for unloading and appointment scheduling.

The consignee needs a 10 a.m. appointment; Consignee unloads and signs the POD; Accessorials apply if the consignee requires inside delivery.

Consignor (Shipper)

The party handing freight over to the carrier at origin. Responsible for accurate documentation, packaging, and tender readiness.

The consignor must provide accurate BOL details; The shipper didn’t palletize as specified; The consignor declared the freight class incorrectly.

Cross-Docking

Moving freight from inbound to outbound trailers with minimal storage to speed throughput and reduce handling.

We’ll cross-dock inbound pallets onto outbound linehaul; Cross-docking cut dwell from 24 hours to 4 hours; The LTL terminal uses a cross-dock layout.

CSA (Compliance, Safety, Accountability)

FMCSA’s safety monitoring program for carriers and drivers, using roadside and crash data across BASIC categories.

Our CSA Vehicle Maintenance BASIC needs improvement; A poor CSA score can deter shippers; Monitoring CSA SMS data helps target safety training.

CWT (Hundredweight)

A billing unit equal to 100 pounds used in LTL rating and tariff structures.

The LTL rate is $32 per CWT; Pricing moved from per-pallet to CWT; Minimum charge weight applies at 5 CWT.

Deadhead

Traveling without revenue freight. Reduces asset utilization and erodes margins.

We’re deadheading 120 miles to the next pickup; The TMS flags high deadhead exposure; Backhauls reduce deadhead and cost per mile.

Dedicated Contract Carriage (DCC)

An arrangement where a carrier provides equipment, drivers, and management exclusively for a shipper’s lanes under contract.

We run a dedicated fleet for the retailer’s DCs; The DCC agreement includes fixed and variable pricing; Dedicated assets improved OTIF and control.

Detention

A charge when loading or unloading exceeds the agreed free time. Common in truckload and sometimes LTL pickup/delivery.

Detention starts after two hours free time; We negotiated detention at $75 per hour; Strict check-in processes reduced detention charges.

DOT (Department of Transportation)

The U.S. federal department overseeing transportation policy and safety, including agencies like FMCSA and FHWA.

DOT audits our compliance programs; DOT number must be displayed on the tractor; DOT regulations affect HOS and vehicle standards.

Drayage

Short-distance movement of containers or trailers between ports, rail ramps, yards, and nearby warehouses. Critical to intermodal flows.

Book drayage from the port to the transload; Chassis availability impacts drayage rates; The rail ramp assessed storage after free time.

DVIR (Driver Vehicle Inspection Report)

A required record of pre-trip and post-trip inspections documenting vehicle defects and repairs.

Submit the post-trip DVIR in the ELD app; The DVIR noted a tire defect; Mechanics closed the outstanding DVIR items.

EDI (Electronic Data Interchange)

Standardized electronic exchange of business documents (e.g., 204 tenders, 214 tracking, 210 invoices) between trading partners.

Send a 204 load tender and expect a 997 acknowledgement; The 214 status update shows arrived at consignee; We invoice via EDI 210.

ELD (Electronic Logging Device)

A device that electronically records a driver’s duty status and driving time to enforce Hours of Service rules.

ELD automatically records drive time; We migrated from AOBRDs to ELDs; ELD data helps verify HOS compliance.

ETA (Estimated Time of Arrival)

The projected arrival time at a stop based on location, route, traffic, and HOS constraints.

Current ETA is 14:30 local; Traffic and HOS reset pushed the ETA; The TMS recalculates ETA using geofencing pings.

FAK (Freight All Kinds)

A pricing method that consolidates multiple NMFC classes into a single rate for a shipper’s mix of freight, common in LTL.

The shipper secured an FAK class 60 program; Reclass the items under the FAK rate; FAK simplified pricing across SKUs.

FMCSA (Federal Motor Carrier Safety Administration)

The U.S. agency regulating interstate trucking safety and operations, including HOS, drug testing, and vehicle standards.

FMCSA updated the HOS guidance; Our new authority is active per FMCSA; FMCSA audits review drug and alcohol compliance.

Freight Class (NMFC)

The National Motor Freight Classification used for LTL pricing based on density, stowability, handling, and liability, with classes from 50 to 500.

Density moved the item from class 92.5 to 70; Verify NMFC before rating the LTL shipment; Reclassification drove a rebill from the carrier.

Fuel Surcharge (FSC)

A variable fee tied to published diesel price indexes to offset fuel cost volatility for carriers.

FSC adjusts weekly based on DOE diesel index; Our bid includes an all-in rate without FSC; High FSC lowered the base linehaul rate.

GVWR (Gross Vehicle Weight Rating)

The maximum allowable total weight for a vehicle as rated by the manufacturer, including vehicle, cargo, fuel, and passengers.

Don’t exceed the trailer’s GVWR; The spec sheet lists tractor GVWR and GAWRs; Payload is constrained by GVWR on this unit.

Hazmat

Hazardous materials subject to special packaging, labeling, placarding, routing, and training requirements (classes 1 through 9).

Hazmat loads require placards and an H endorsement; Verify packaging meets hazmat regulations; Hazmat routing restrictions apply through tunnels.

Headhaul

The higher-demand, typically higher-priced direction of a freight lane, opposite of backhaul.

Rates are strongest in the headhaul direction; We balance headhaul with backhaul to stabilize yield; Capacity tightens on headhaul lanes during peak.

HOS (Hours of Service)

Federal limits on driving and on-duty time, with rules like 11-hour drive, 14-hour on-duty, 30-minute break, and 60/70-hour weekly limits.

Driver hit the 14-hour clock, so delivery is tomorrow; Use the 34-hour restart over the weekend; The sleeper berth split helped maximize HOS.

IFTA (International Fuel Tax Agreement)

A compact that simplifies fuel tax reporting across U.S. states and Canadian provinces via quarterly filings by carriers.

File IFTA quarterly for all jurisdictions traveled; Keep fuel receipts for IFTA audits; The TMS calculates miles by state for IFTA.

Incoterms

Standard international trade terms defining delivery obligations, risk transfer, and cost responsibility between buyer and seller (e.g., EXW, FOB, CIF, DDP).

The sale is DDP, so we handle import and delivery; Under FOB, the buyer arranges domestic haulage; Confirm risk transfer per Incoterms 2020.

Intermodal

Shipping that combines modes (truck, rail, ocean) using standardized containers or trailers without handling the cargo itself.

Convert the long haul to rail intermodal; We’ll dray to the ramp and deliver by truck at destination; Intermodal saves cost but adds transit time.

Jackknife

A loss-of-control event where the trailer swings toward the tractor, creating a V shape, often due to traction loss or abrupt braking.

The unit jackknifed on the icy ramp; Driver training focuses on preventing jackknife events; ABS helps reduce jackknife risk during hard braking.

JIT (Just-In-Time)

A supply strategy that minimizes inventory by synchronizing deliveries with production or sales needs.

The plant runs JIT, so missed delivery shuts a line; We scheduled milk runs to support JIT replenishment; JIT needs dependable OTIF performance.

KPI (Key Performance Indicator)

A measurable metric used to manage performance, such as on-time delivery, cost per mile, utilization, dwell, and damage rate.

Our KPIs include on-time %, RPM, and claims ratio; Lane-level KPIs improved after routing guide updates; Share KPI dashboards with carriers monthly.

Last Mile Delivery

The final leg from a local node to the end customer or store, often with small drops, tight windows, and urban constraints.

Expect time-windowed last mile appointments; Liftgate and inside delivery are common last mile needs; Urban last mile requires smaller vehicles.

Layover

A driver wait period, typically overnight, due to scheduling issues, delays, or breakdown, often compensated with layover pay.

The missed appointment caused a layover; The carrier billed layover at a flat day rate; A spare trailer reduced layovers at the DC.

Liftgate

A hydraulic platform at the rear of a truck that raises and lowers freight when a dock or forklift is unavailable.

Add a liftgate accessorial for residential delivery; The consignee lacks a dock, so a liftgate is required; The liftgate capacity is 2,500 lbs.

Linehaul

The long-distance movement between terminals or major nodes, excluding pickup and delivery and most accessorials.

Linehaul runs nightly between hubs; The bid separates linehaul from pickup and delivery; Linehaul cost per mile improved with better cube.

Load-to-Truck Ratio

A market indicator showing the number of posted loads versus available trucks in a region; higher ratios imply tighter capacity and higher rates.

DAT shows a 6:1 load-to-truck ratio in Atlanta; High ratio signals rising spot rates; Reposition trucks into markets with tighter ratios.

LTL (Less-Than-Truckload)

A network-based service consolidating multiple shippers’ freight on one trailer with terminal cross-docking and class-based pricing.

We’re shipping three pallets via LTL; The LTL carrier reweighed and reclassed the freight; Use a master BOL for multiple LTL shipments.

MC Number (Motor Carrier Number)

An FMCSA operating authority identifier for for-hire carriers and brokers engaged in interstate commerce in the U.S.

Check the carrier’s MC and DOT numbers on SAFER; Our MC authority is active and insured; The broker operates under MC brokerage authority.

OS&D (Overages, Shortages, and Damages)

Exceptions found at delivery when freight counts or condition do not match the BOL; requires documentation and claims handling.

File an OS&D report with photos at delivery; The claim cites OS&D due to crushed cartons; OS&D trends dropped after better packaging.

OTIF (On Time In Full)

A service metric measuring whether orders arrive by the promised time and in the correct quantities.

The retailer fines for missed OTIF; We track OTIF by lane and consignee; Dedicated capacity improved OTIF performance.

Owner-Operator

An independent driver who owns the truck and either leases to a carrier or operates under their own authority.

The load is covered by an owner-operator leased to our fleet; Owner-operators prefer all-in spot rates; Offer fuel discounts to attract OOs.

Palletization

Organizing and securing goods on pallets to improve handling, protection, and trailer cube utilization.

Palletize to standard 48x40 to optimize cube; Poor palletization increased OS&D; We added corner boards and stretch wrap to improve stability.

Payload

The weight of cargo a vehicle carries, excluding the vehicle’s own weight; payload plus tare equals gross weight.

Payload is limited by axle weights and GVWR; The reefer’s heavier unit reduces payload; Optimize packaging density to increase payload.