Freight Glossary
Every term you need to know in freight, logistics, and supply chain - explained simply.
A
Asset-Based Carrier
A transportation company that owns and operates its own trucks and equipment, as opposed to a non-asset broker that relies entirely on third-party carriers.
B
Bill of Lading (BOL)
A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being carried. It serves as a receipt of freight services.
Broker (Freight Broker)
A licensed intermediary that arranges transportation between shippers and carriers. Freight brokers do not own trucks but coordinate logistics.
C
Capacity
The available supply of trucks and trailers to move freight. When capacity is tight, rates go up; when loose, rates drop.
Commodity
The type of goods being shipped - auto parts, food products, raw materials, consumer goods, etc.
Cross-Docking
A logistics practice where products from a supplier are distributed directly to a customer with minimal or no storage time at the dock.
Customs Broker
A professional who handles customs clearance for goods crossing international borders, including documentation and duty payments.
D
Deadhead
Miles a truck drives empty without a load, typically between delivery and the next pickup. Deadhead miles add cost.
Dedicated Fleet
Trucks and drivers assigned exclusively to one shipper, providing consistent capacity and service levels.
Detention
A charge assessed when a truck is held at a facility beyond the allowed free time for loading or unloading.
Drayage
Short-distance transportation of freight, typically between a port or rail terminal and a warehouse or distribution center.
Dry Van
A standard enclosed trailer used to transport non-perishable freight. The most common type of trailer in trucking.
F
FTL (Full Truckload)
A shipment that fills an entire trailer, typically 10,000–45,000 lbs. The shipper pays for exclusive use of the trailer.
FMCSA
Federal Motor Carrier Safety Administration - the US federal agency responsible for regulating and overseeing commercial motor vehicles.
FSMA
Food Safety Modernization Act - US law requiring preventive controls for food safety, including sanitary transportation rules for food freight.
Flatbed
An open trailer without sides or a roof, used for oversized, heavy, or irregularly shaped freight like construction materials or machinery.
Freight Class
A standardized classification system (classes 50–500) used in LTL shipping based on density, handling, stowability, and liability.
I
Intermodal
Freight transportation using two or more modes (typically truck + rail) in a single journey, using standardized containers.
L
LTL (Less Than Truckload)
A shipment that doesn't require a full trailer - typically 150–10,000 lbs. Multiple shippers share truck space.
Lane
A specific origin-destination pair for shipping freight, e.g., Detroit to Toronto or Chicago to Dallas.
Linehaul
The movement of freight between two cities, excluding pickup and delivery charges.
M
MC Number
Motor Carrier number issued by the FMCSA. Required for carriers operating in interstate commerce.
P
POD (Proof of Delivery)
A document signed by the consignee confirming receipt of the shipment. Essential for billing and claims.
Q
Quick Pay
An expedited payment option for carriers, typically paying within 2–7 days instead of the standard 30–45 day terms.
R
Reefer
A refrigerated trailer used to transport temperature-sensitive freight like food, pharmaceuticals, or chemicals.
S
Spot Market
The market for immediate, one-time freight shipments at current market rates, as opposed to contracted/committed rates.
Step Deck
A flatbed trailer with two deck levels - a higher section near the cab and a lower section toward the rear - used for taller cargo.
T
TMS (Transportation Management System)
Software used to plan, execute, and optimize the movement of goods. Includes quoting, booking, tracking, and reporting.
Tariff
A published schedule of rates, charges, and rules for freight transportation services.
Transit Time
The number of days it takes for freight to travel from origin to destination.
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