Freight Terms Glossary
156+ essential freight, trucking, and logistics terms defined. A comprehensive A–Z reference for shippers, carriers, and logistics professionals.
A
Accessorial
Additional charges beyond standard pickup and delivery, such as detention, liftgate, inside delivery, or residential delivery fees.
Ad Valorem
A duty or tax based on the value of the imported goods, calculated as a percentage of the customs value.
Air Waybill (AWB)
A shipping document for air freight that serves as a receipt and contract of carriage between the shipper and the airline.
All-In Rate
A freight rate that includes all charges — linehaul, fuel surcharge, and accessorials — in a single price.
Arrival Notice
A notification from the ocean carrier to the consignee advising that a shipment has arrived at the destination port.
B
Backhaul
The return trip of a truck after delivering its primary load. Carriers offer discounted backhaul rates to avoid empty miles.
Bill of Lading (BOL)
A legal document issued by a carrier acknowledging receipt of cargo for shipment. It serves as a contract of carriage, receipt of goods, and document of title.
Blind Shipment
A shipment where the shipper's or consignee's identity is hidden from the carrier to protect business relationships.
Bobtail
A tractor operating without a trailer attached, typically when repositioning between loads.
Bonded Warehouse
A CBP-authorized storage facility where imported goods can be held without duty payment for up to 5 years.
Booking
A reservation for cargo space on a vessel, aircraft, or truck for a specific shipment.
Broker Authority
FMCSA authorization (MC-B) to operate as a freight broker, arranging transportation for compensation.
Bulk Freight
Unpackaged commodities shipped in large quantities, such as grain, coal, oil, or chemicals.
C
Cabotage
The transport of goods within a country by a foreign carrier. US cabotage laws restrict domestic freight to US-flagged carriers.
Cargo Insurance
Insurance covering the value of goods during transportation against loss, damage, or theft.
Carrier
A company that physically transports freight using its own trucks, ships, planes, or trains.
Carrier Packet
Documentation submitted by a carrier to a broker for vetting, including MC authority, insurance certificates, W-9, and operating agreement.
Cartage
The transport of goods within a local area, typically within the same city or metropolitan region.
CBP (Customs and Border Protection)
The federal agency responsible for regulating imports, collecting duties, and enforcing trade laws at US ports of entry.
CFR (Cost and Freight)
An Incoterm where the seller pays for transportation to the destination port but risk transfers to the buyer when goods are loaded on the vessel.
Chassis
A wheeled frame used to transport shipping containers by truck between ports, rail terminals, and warehouses.
CIF (Cost, Insurance, Freight)
An Incoterm where the seller pays for transportation and insurance to the destination port.
Class Rate
An LTL freight rate based on the National Motor Freight Classification (NMFC) system, ranging from class 50 to class 500.
COD (Cash on Delivery)
A payment arrangement where freight charges are collected from the consignee upon delivery.
Commodity
The type of goods being transported. Commodity type affects freight classification, rates, and equipment requirements.
Common Carrier
A transportation company that offers services to the general public at published rates without discrimination.
Consignee
The party receiving freight at the delivery destination, responsible for signing the proof of delivery.
Consolidation
Combining multiple smaller shipments into one larger shipment to reduce per-unit transportation costs.
Container
A standardized metal box (20' or 40') used for intermodal shipping of goods by ocean, rail, and truck.
Contract Carrier
A carrier that provides transportation under specific contracts with selected shippers.
Contract Freight
Freight moved under a pre-negotiated rate agreement, typically for 6–12 months, providing rate stability and capacity assurance.
Cross-Dock
A logistics facility where freight is transferred directly from inbound to outbound trucks with minimal storage time.
CSA Score
Compliance, Safety, Accountability score from FMCSA measuring carrier and driver safety performance.
Cubic Capacity
The total volume of cargo space available in a trailer, container, or warehouse, measured in cubic feet.
Customs Bond
A financial guarantee to CBP ensuring payment of all duties, taxes, and fees on imported goods.
Customs Broker
A licensed professional authorized by CBP to conduct customs business and clear imported goods on behalf of importers.
CWT (Hundredweight)
A unit of measurement equal to 100 pounds, commonly used for LTL freight pricing.
D
Day Cab
A truck tractor without a sleeper berth, designed for local and regional hauls where drivers return home daily.
Deadhead
A truck traveling empty without a load. Deadhead miles generate no revenue and increase carrier costs.
Dedicated Fleet
Trucks and drivers assigned exclusively to serve one shipper's transportation needs.
Delivery Appointment
A scheduled time window for freight delivery at the receiving facility.
Demurrage
A charge for containers remaining at a port terminal beyond the allowed free time, typically $100–$400+ per container per day.
Density
The weight of freight per cubic foot, used to determine LTL freight class. Higher density = lower class = lower rates.
Detention
A charge for holding a truck at a facility beyond the allotted free time (usually 2 hours), typically $50–$100 per hour.
Dispatch
The process of assigning a driver and truck to pick up and deliver a specific load.
DOT Number
A unique identifier assigned by FMCSA to commercial motor vehicles operating in interstate commerce.
Drayage
Short-distance transport of shipping containers between ports, rail terminals, and warehouses.
Drop Trailer
Leaving a trailer at a facility for loading/unloading at the shipper's convenience, with later pickup.
Dry Van
An enclosed, non-temperature-controlled trailer — the most common equipment type for general freight.
Dunnage
Materials (lumber, airbags, foam) used to secure and protect freight inside a trailer during transit.
Duty
A tax imposed on imported goods by the customs authority, calculated based on the HTS classification and value.
E
ELD (Electronic Logging Device)
A device that automatically records a driver's Hours of Service (HOS). Mandated by FMCSA for most commercial vehicles.
Entry Summary
CBP Form 7501 filed to formally enter imported goods into US commerce, including classification, value, and duty calculation.
Equipment
The type of trailer used for transportation: dry van, reefer, flatbed, step deck, tanker, etc.
ETA (Estimated Time of Arrival)
The expected arrival time for a shipment at its destination.
ETD (Estimated Time of Departure)
The expected departure time for a vessel, truck, or train from its origin point.
Exempt Carrier
A carrier transporting commodities exempt from economic regulation (certain agricultural products, newspapers, etc.).
Expedited
A premium transportation service for time-critical shipments, using team drivers and direct routing at higher rates.
Export
Goods shipped from the United States to a foreign country.
F
Factoring
Selling unpaid freight invoices to a factoring company for immediate cash at a discount.
FCL (Full Container Load)
A shipping container used exclusively by one shipper, as opposed to LCL (Less than Container Load).
FMCSA
Federal Motor Carrier Safety Administration — the US agency that regulates interstate trucking and bus industries.
FOB (Free on Board)
An Incoterm specifying when risk transfers from seller to buyer. FOB Origin = buyer assumes risk at pickup.
Freight All Kinds (FAK)
A simplified LTL pricing structure that uses a single rate regardless of freight class.
Freight Audit
Review of shipping invoices for accuracy against contracted rates and accessorial schedules.
Freight Bill
An invoice for transportation services rendered, detailing charges, shipment details, and payment terms.
Freight Broker
A licensed intermediary that arranges transportation between shippers and carriers without owning trucks.
Freight Claim
A formal demand for payment for damaged, lost, or short-shipped freight, filed against the responsible carrier.
Freight Class
An NMFC classification (50–500) based on density, stowability, handling, and liability, used for LTL pricing.
Freight Forwarder
A company that arranges cargo transportation, typically international, handling documentation, customs, and logistics coordination.
FTL (Full Truckload)
A shipment that fills an entire trailer. The shipper pays for the whole truck regardless of unused space.
Fuel Surcharge (FSC)
An additional charge added to freight rates to account for fluctuating diesel fuel prices.
G
Gateway
A major port, airport, or border crossing where international freight enters or exits a country.
Gross Weight
The total weight of a shipment including the product, packaging, pallets, and dunnage.
H
Harbor Maintenance Fee (HMF)
A 0.125% fee on the value of cargo imported through US seaports, funding harbor maintenance.
Hazmat
Hazardous materials requiring special handling, documentation, and placarding during transportation.
Hot Shot
A time-sensitive partial load transported on a flatbed or gooseneck trailer pulled by a pickup truck.
Hours of Service (HOS)
Federal regulations limiting how long commercial drivers can operate: 11-hour driving limit, 14-hour on-duty window.
HTS Code
Harmonized Tariff Schedule classification code used to determine duty rates on imported goods.
I
Import
Goods shipped into the United States from a foreign country.
In-Bond
Cargo moving through the US under CBP supervision without being entered for consumption.
Incoterms
International Commercial Terms defining responsibilities between buyers and sellers in international trade (FOB, CIF, DDP, etc.).
Inside Delivery
Moving freight beyond the loading dock into the interior of a building, incurring additional charges.
Interchange
The transfer of equipment (trailers, containers, chassis) between carriers or transportation modes.
Interline
A shipment that uses two or more carriers to complete delivery, common in LTL where no single carrier covers the full route.
Intermodal
Transportation using two or more modes (truck + rail, truck + ocean) with containers transferred between modes.
ISF (Importer Security Filing)
A mandatory CBP filing required 24 hours before ocean vessel loading, containing 10 importer data elements.
K
Kingpin
The coupling device on a trailer that connects to the tractor's fifth wheel for towing.
L
Last Mile
The final leg of delivery from a distribution center to the end customer — typically the most expensive segment.
LCL (Less than Container Load)
A shipment that doesn't fill an entire container, consolidated with other LCL shipments.
Liftgate
A hydraulic platform on the rear of a truck for loading/unloading freight at locations without docks.
Linehaul
The point-to-point transportation of freight between cities or terminals — the base charge before surcharges.
Live Load/Unload
The driver remains with the truck while it's loaded or unloaded at the facility.
Load Board
An online marketplace where brokers post available loads and carriers search for freight (DAT, Truckstop.com).
Logistics
The planning, execution, and management of the flow of goods from origin to destination.
Lowboy
A trailer with a very low deck height for transporting extremely tall or heavy equipment.
LTL (Less-Than-Truckload)
A shipping method for freight that doesn't require a full trailer, combining shipments from multiple shippers.
Lumper
A third-party worker who loads or unloads freight, commonly used at grocery and retail warehouses.
M
Manifest
A comprehensive list of all cargo aboard a transportation vehicle, including shipper and consignee details.
MC Number
Motor Carrier number issued by FMCSA, required for interstate freight carriers and brokers.
Merchandise Processing Fee (MPF)
A CBP fee of 0.3464% on imported goods, with minimum $31.67 and maximum $614.35 per entry.
Mode
The method of transportation: truck (motor), rail, ocean, air, or pipeline.
N
NMFC
National Motor Freight Classification — the system for categorizing LTL freight into classes 50–500.
Non-Vessel Operating Common Carrier (NVOCC)
A company that provides ocean freight services without owning vessels, issuing its own bills of lading.
O
OD (Over-Dimensional)
Freight exceeding standard size limits requiring special permits, escorts, and route planning.
Operating Authority
Legal permission from FMCSA to operate as a for-hire carrier or broker in interstate commerce.
Operating Ratio
A carrier's operating expenses divided by revenue. An OR below 100% indicates profitability.
Order Notify
A BOL that requires the consignee to present the original document to receive the goods.
Origin
The location where a shipment is picked up and begins its journey.
OTR (Over the Road)
Long-haul trucking that covers interstate routes, typically requiring drivers to be away from home for days or weeks.
Owner-Operator
A truck driver who owns their truck and operates as an independent contractor.
P
Packing List
A document detailing the contents, quantities, and packaging of a shipment.
Pallet
A flat platform (standard 48x40 inches) used to stack, store, and transport freight.
Partial Load
A shipment between LTL and FTL size, too large for LTL but not filling a full trailer.
Per Diem
A daily charge for container or chassis use beyond the allowed free time.
PierPass
A congestion-relief program at LA/Long Beach ports charging a fee for peak-hour container movements.
POD (Proof of Delivery)
A signed document confirming that freight was received by the consignee at the delivery location.
Port of Entry
A designated location where goods may enter or leave a country under customs supervision.
Power Only
The carrier provides only the tractor and driver; the trailer is provided by another party.
Pre-Pull
Pulling a container from the port before the actual delivery date, storing it at a yard to avoid congestion.
Private Carrier
A company that transports its own goods using its own trucks.
Pro Number
A progressive or tracking number assigned by an LTL carrier to identify and track a shipment.
R
Rate Confirmation
A binding agreement between broker and carrier specifying load details, rate, and terms.
Receiver
The party at the delivery location who accepts the freight — may be the consignee or their agent.
Reefer
A refrigerated trailer maintaining temperature-controlled conditions for perishable or sensitive freight.
Relay
Transferring a load from one driver to another at a midpoint to avoid HOS violations on long hauls.
Residential Delivery
Delivery to a residential address, which typically incurs additional fees due to limited access.
S
Scale Ticket
A document from a certified truck scale verifying the vehicle's gross, tare, and net weight.
Seal
A tamper-evident device placed on loaded trailer doors, verified at delivery for security.
Section 301
Additional tariffs imposed on imports from specific countries as a trade remedy measure.
Shipper
The party that originates a shipment — the company or individual needing goods transported.
Sleeper Cab
A truck cab with an extended sleeping area for drivers on long-haul routes.
Spot Market
The open marketplace where freight is booked at current market rates on a per-load basis.
Step Deck
A trailer with a lower rear deck section allowing taller freight than a standard flatbed.
Surety Bond
A $75,000 financial guarantee required for freight brokers (BMC-84) to protect against payment default.
T
Tail Swing
The outward swing of a trailer's rear end when turning, which must be managed to avoid hitting objects.
Tandem Axle
Two axles grouped together on the rear of a tractor or trailer. Sliding tandems redistributes weight.
Tare Weight
The weight of an empty container, trailer, or vehicle without cargo.
Tariff
A published schedule of rates, rules, and charges for freight transportation services.
Team Driving
Two drivers alternating driving and sleeping to keep the truck moving continuously, covering 1,000+ miles/day.
TEU (Twenty-Foot Equivalent Unit)
The standard unit for counting container capacity. A 40-foot container equals 2 TEUs.
Third-Party Logistics (3PL)
A company that manages logistics operations including transportation, warehousing, and fulfillment for shippers.
Through Rate
A single rate covering transportation from origin to final destination, even if multiple carriers are involved.
TL (Truckload)
See FTL. A shipment requiring a full trailer.
TMS (Transportation Management System)
Software for planning, executing, and optimizing the movement and storage of goods.
TONU (Truck Ordered Not Used)
A fee charged when a carrier dispatches a truck but the load is cancelled or not ready. $150–$350 typical.
Tracking
Real-time monitoring of a shipment's location and status throughout the transportation process.
Trailer Interchange
An agreement allowing the use of another company's trailers under specified terms.
Transit Time
The number of days from pickup to delivery for a freight shipment.
Transload
Transferring freight from one container or vehicle to another, often from ocean container to domestic trailer.
TWIC Card
Transportation Worker Identification Credential — a biometric card for unescorted access to secure maritime facilities.
U
UCR (Unified Carrier Registration)
Annual registration required for interstate carriers, brokers, and freight forwarders.
W
Warehouse
A facility for storing goods before distribution. Indray offers warehousing and distribution services.
Waybill
A document from the carrier detailing the shipment route, charges, and delivery instructions.
Weigh Station
A checkpoint where commercial trucks are weighed for compliance with federal and state weight limits.
Y
Yard Storage
Storing containers or trailers in an outdoor yard facility, typically near a port or rail terminal.
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