The Language of Logistics: The ABCs of Transportation

In any relationship – personal or professional – clear and effective communication helps promote a healthy and lasting union. When breakdowns in communication occur, they can generate both confusion and frustration, as well as delay and potentially halt growth and progress, until they are resolved. Oftentimes, such breakdowns arise because the parties involved are not “speaking the same language.”

As is true with any specialized industry, there are a number of terms and expressions that may not be common knowledge to many outside the logistics field. We would like to rectify that inasmuch as we can.

As such, the following glossary of terms has been developed in the hopes that it will assist both current and potential clients in gaining a better understanding of the “language” of the logistics industry and foster deeper communication between all parties.

– A –

• Accessorials – fees that may be added to either a client or carrier rate to compensate for additional services that go beyond standard pickup and delivery (i.e., detention, driver-assistance, lumper, etc.)
• Authority – the license and registration granted to an individual or company granting permission to act as either a broker or hauler of commercial goods
• Auto Liability Insurance – a type of coverage listed on a carrier’s certificate of insurance that covers bodily injury claims and property damage

– B –

• Backhaul – a return load that brings a truck driver back to or near his initial starting point or home terminal
• Bill of Lading / BOL – a legal document that details the type and quantity of goods to be transported as well as the shipping and receiving locations
• Bobtail – a truck without an attached trailer
• Box Truck – a medium-sized truck, generally 14 to 26 feet in length, with an enclosed trailer used for local, regional, or partial loads
• Broker – an individual or organization that acts as an intermediary between clients, carriers and shipping/receiving facilities
• Broker /Carrier Agreement – a contract between a freight broker and carrier that details the terms of service for transporting a load
• Bulk Freight – freight such as coal, dirt, or sand that must be transported in an unpackaged state

– C –

• Cab – the section of a tractor in which the driver operates the vehicle
• Capacity – the availability of trucks in a given area that are available to transport freight
• Cargo Insurance – a type of coverage listed on a carrier’s certificate of insurance that covers the freight being hauled in case of loss or damage
• Cargo Van – an enclosed van used to transport smaller loads generally under 4000 lbs
• Carrier – an owner/operator or company that transports materials either by air, land, or sea
• Certificate of Insurance / COI – a document provided by a carrier that provides evidence of current insurance coverage
• Chassis – a frame with wheels, brakes and other necessary equipment used for shipping containers
• Commercial Driver’s License / CDL – a special license required in order to legally operate vehicles and transport goods with a combined weight of over 26,001 pounds
• Common Carrier – a carrier that provides services to any customer
• Contract Carrier – a carrier that provides regular services to a specific customer according to the guidelines of a written contract
• Conestoga – an open-top trailer with a retractable tarp system that provides flexibility for loading paired with protection from the elements
• Consignee (also Receiver) – the individual or company to which goods are transported
• Consignor (also Shipper) – the individual or company from which goods are transported
• Container – a large box used for intermodal transport (i.e., truck, rail, sea)

– D –

• Deadhead – the practice of hauling an empty trailer from a home terminal or prior receiving site to the next shipping point
• Dedicated Lane – a routinely scheduled, recurring route for a specific shipper and/or receiver
• Demurrage – a fee incurred when equipment is left at a terminal, rail yard, or port beyond a contracted period of time
• Department of Transportation / DOT – the federal government agency that is responsible for regulating and providing the “safe, efficient, sustainable, and equitable movement of people and goods (https://www.transportation.gov/)
• Detention – any excess time period beyond an industry-standard window of 2 hours allotted for loading or unloading a truck for which a carrier can request compensation, as such delays can cause them to miss their next scheduled pick up
• Dispatcher – an individual who directs the movement of trucks and communicates their progress, as well as any issues that could impact the timing of a scheduled delivery
• Distribution Center / DC – a warehouse facility that holds inventory from a manufacturer pending distribution and delivery to various receiving sites
• Dock – the platform from which trailers are loaded or upon which trailers are unloaded
• Driver Assistance – an accessorial fee incurred when a driver is required to assist in either the loading or unloading of goods
• Drop-Deck – an open-top trailer with an upper and lower deck that allows for the safe and legal transportation of freight that is too tall to be carried on a standard flatbed trailer
• Dry Van – an enclosed trailer that does not require temperature control

– E –

• Electronic Logging Device / ELD – a device that the Federal Motor Carrier Safety Administration (FMCSA) has mandated be installed and operational on all trucks in order to monitor and log truck movement

– F –

• Federal Motor Carrier Safety Administration / FMCSA – the federal government agency that is responsible for regulating and providing safety oversight of commercial motor vehicles (https://www.fmcsa.dot.gov/)
• Flatbed – an open-top trailer used for transporting large items that are either awkward in shape or require a specialized equipment (such as a crane) for loading and unloading
• Floor-Loaded Shipment – freight that is loaded directly onto the floor of a container or truck without the use of pallets, generally to maximize space and reduce shipping costs
• Free on Board / FOB – a term referring to when the responsibility for goods transfers from a seller to a buyer; responsibility may be ¹ at origin, whereby a buyer assumes responsibility for all costs and risks associated with transport after goods are loaded or ² at destination, whereby a seller assumes responsibility for all costs and risks associated with transport until goods reach delivery
• Freight Broker – see “Broker” above
• Freight Rate – the rate are which freight is transported from shipper to receiver
• Fuel Surcharge – a charge included to cover the fluctuating cost of fuel; typically a percentage of the base rate
• Full Truck Load / FTL – a shipment that requires the use of at least half half the full capacity of a 48′ or 53′ trailer

– G –

– H –

• Hazardous Materials / HAZMAT – materials that can pose risks to health, safety, or property during transportation and, therefore, typically require a higher rate than non-hazardous goods
• Hotshot – ¹ a load that require expedient delivery and can fit on a box truck, pick up truck, or trailer or ² the type of equipment used to transport such
• Hours of Service – the maximum amount of time that a commercial truck driver may be on duty (i.e., no more than 11 hours of driving in a 14-hour period; a 30-minute break must be taken after 8 hours of driving)

– I –

• Intermodal – the process of moving goods via two or more modes of transportation (i.e., trains, trucks, and ships)
• Interstate – a freight shipment requiring the crossing of state lines
• Intrastate – a freight shipment transported within a single state
• Invoice – a bill requesting payment for services rendered

– J –

• Just-In-Time Freight / JIT – freight that is shipped to meet production needs requiring minimal storage time but also allowing little to no room for delays during transit

– K –

– L –

• Lane – a shipping route between two locations
• Layover – ¹ a mandatory rest period during which a driver must stop driving, ² the amount of time a driver may be delayed due to bad weather or shipping/receiving issues, or ³ an accessorial fee incurred for the former
• Less Than Truckload / LTL – a shipment generally between 150 lbs and 10,000 lbs that does not require the use of an entire truck and usually travels with other, similar materials to lower cost
• Liftgate – a motorized tailgate at the rear of a truck or trailer upon which goods can be placed for lifting from the ground to the bed of the truck/trailer and vice versa
• Linehaul – the movement of goods between locations during transit
• Load – goods being transported from one location to another
• Load Board – an online platform utilized by brokers and shippers to post loads and through which carriers can find available freight
• Load Broker – see “Broker” above
• Lowboy – an open-top trailer with a lowered middle section that rides closed to the ground in order to aid the transportation of tall or bulky loads
• Lumper – ¹ a third-party crew member at a warehouse or distribution center hired to load and unload trucks or ² an accessorial fee incurred for the services of such

– M –

– N –

– O –

• Owner Operator – a self-employed driver who owns and operates his/her own truck and run under their own authority
• Oversize / Overweight Permits – permits required for loads that exceed legal size and/or weight limits
• Over-The-Road / OTR – a long-distance lane that requires a carrier to be in transit for a substantial period of time

– P –

• Palletized Shipment – freight that is placed upon pallets that can be lifted and loaded or unloaded via manual or mechanical forklifts
• Partial – a shipment generally between 10,000 lbs and 30,000 lbs that does not require the use of an entire truck and often travels with other, similar materials to lower cost
• Piggyback – ¹ a flatbed trailer that carries its own forklift or ² a loaded trailer being transported via train
• Power Only – a shipment when only a tractor is needed to haul a trailer or a container owner by another individual or organization

– Q –

– R –

• Rate – see “Freight Rate” above
• Rate Confirmation / RC – a document provided by a broker to a carrier confirming the rate that has been agreed to haul a specific load
• Receiver – see “Consignee” above

• Reefer – a slang term for a refrigerated van
• Refrigerated Van – an enclosed trailer that provides a temperature-controlled environment to keep perishable goods safe from spoilage
• Remittance – the process of sending payment from the consignee to the service provider as outlined on an invoice
• Removable Goose Neck / RGN – an open-top trailer with a hitch that resembles the neck of a goose

– S –

• Seal – a device used to secure the doors of a trailer and ensure that freight is not tampered with during transit
• Sleeper – the section of a tractor in which the driver rests during stops
• Shipper – see “Consignor” above
• Solo Driver – a single driver who bears the full responsibility of transporting goods
• Spot Market – a market for immediate freight transactions as found on load boards
• Sprinter Van – a type of cargo van manufactured by Dodge and Mercedes-Benz
• Step-Deck – see “Drop-Deck” above
• Straight Truck – see “Box Truck” above

– T –

• Tanker – an enclosed trailer used to transport dry or wet bulk materials
• Team Drivers – a pair of drivers who bear the shared responsibility of transporting goods and allow for continuous transit by alternating shifts
• Third-Party Logistics Providers / 3PL Providers – companies that offer outsourced logistics and warehouse services
• Tractor – the section of a truck that pulls a trailer
• Trailer – the section of a truck that carries freight
• Transload – the process of transferring a shipment from one mode of transportation to another
• Transportation Management System / TMS – a software platform utilized to streamline shipment planning, carrier selection, freight tracking, and reporting
• Trip Sheet – a document that records a driver’s miles driven and the states through which the driver has traveled
• Truck Broker – see “Broker” above
• Truck Order Not Used / TONU – an accessorial fee incurred when an order is canceled at the last minute, usually when the carrier has already arrived at the shipping location or if the carrier is still en route but has already traveled a considerable distance
• Truckload – See “Full Truck Load / FTL” above
• Transportation Worker Identification Card / TWIC Card – a credential for carriers that require access to secure areas of ports

– U –

– V –

– W –

• W9 – a document that provides a taxpayer identification number
• Weigh Station – a DOT facility that weighs trucks to ensure they are not overweight and may also inspect equipment and logs to ensure compliance with federal guidelines

– X –

– Y –

– Z –