Question 1

What is FTL (Full Truckload)?

Accepted Answer

FTL means a shipper's freight fills an entire trailer, typically 26–30 pallets or up to 45,000 lbs. The truck travels directly from origin to destination without making stops for other shippers.

Question 2

What is LTL (Less-Than-Truckload)?

Accepted Answer

LTL combines shipments from multiple shippers into one trailer. Each shipper pays only for the space their freight occupies. LTL is cost-effective for shipments between 150 and 10,000 lbs.

Question 3

What is a freight broker?

Accepted Answer

A freight broker is a licensed intermediary that connects shippers with carriers. Brokers like Indray Inc coordinate logistics, negotiate rates, track shipments, and handle paperwork without owning trucks.

Question 4

How are trucking rates calculated?

Accepted Answer

Rates depend on distance, weight, equipment type, fuel prices, market demand, lane popularity, seasonality, and accessorial services. FTL is priced per mile; LTL is priced per hundredweight (cwt) by freight class.

Question 5

What is detention in trucking?

Accepted Answer

Detention is a charge applied when a driver waits longer than the allotted free time (usually 2 hours) at a pickup or delivery location. Typical detention rates are $50–$100 per hour.

Question 6

What is layover?

Accepted Answer

Layover is a fee charged when a driver must wait overnight or longer at a location due to delays by the shipper or receiver. Layover typically costs $250–$400 per day.

Question 7

What is TONU?

Accepted Answer

TONU (Truck Ordered Not Used) is a fee charged when a carrier dispatches a truck to a pickup location but the load is cancelled or not ready. TONU fees range from $150–$350.

Question 8

What is a lumper fee?

Accepted Answer

A lumper fee pays for third-party workers who unload freight at the delivery location. Lumper services are common at grocery and retail distribution centers and typically cost $100–$300.

Question 9

What is a Bill of Lading (BOL)?

Accepted Answer

A BOL is a legal document issued by a carrier acknowledging receipt of freight. It serves as a contract of carriage, receipt of goods, and document of title. The BOL includes shipper/consignee info, commodity description, weight, and special instructions.

Question 10

What is a Proof of Delivery (POD)?

Accepted Answer

A POD is a signed document confirming that freight was delivered to the consignee. It includes delivery date, time, condition of goods, and the receiver's signature. PODs are required for carrier payment.

Question 11

What is reefer freight?

Accepted Answer

Reefer freight refers to temperature-controlled shipments transported in refrigerated trailers. Common reefer commodities include produce, dairy, pharmaceuticals, and frozen foods. Reefer rates are typically 20–30% higher than dry van.

Question 12

What is flatbed trucking?

Accepted Answer

Flatbed trucking uses open trailers without sides or roof, ideal for oversized, heavy, or irregularly shaped cargo like steel, lumber, machinery, and construction materials.

Question 13

What insurance is required for carriers?

Accepted Answer

Carriers must carry primary auto liability ($750K–$1M minimum), cargo insurance ($100K minimum), and general liability. Hazmat carriers need $1M–$5M in liability coverage.

Question 14

What is an MC number?

Accepted Answer

An MC (Motor Carrier) number is a unique identifier issued by FMCSA to interstate freight carriers and brokers. It's required to operate legally across state lines.

Question 15

What is a DOT number?

Accepted Answer

A DOT number is a unique identifier assigned by FMCSA to commercial motor vehicles operating in interstate commerce. It's used for safety audits, compliance reviews, and crash investigations.

Question 16

How long does coast-to-coast trucking take?

Accepted Answer

Coast-to-coast FTL transit (e.g., Los Angeles to New York) typically takes 4–5 days. LTL may take 7–10 business days due to terminal transfers and consolidation.

Question 17

How much does trucking cost per mile?

Accepted Answer

Dry van FTL averages $1.80–$2.80/mile, reefer $2.20–$3.50/mile, and flatbed $2.50–$3.80/mile. Rates vary by lane, season, and market conditions.

Question 18

How do fuel surcharges work?

Accepted Answer

Fuel surcharges are calculated using a base fuel price and a sliding scale tied to the DOE national average diesel price. When diesel exceeds the base price, the surcharge increases proportionally.

Question 19

How do freight brokers make money?

Accepted Answer

Brokers earn the spread between the rate charged to the shipper and the rate paid to the carrier. Typical margins range from 10–20% of the total freight cost.

Question 20

What happens if freight is damaged?

Accepted Answer

If freight is damaged, the consignee should note damage on the POD, photograph evidence, and file a claim with the carrier within 9 months (per the Carmack Amendment). The carrier is liable for full actual value unless limited by tariff.

Question 21

What is a dry van trailer?

Accepted Answer

A dry van is an enclosed, non-temperature-controlled trailer used for standard freight. It's the most common trailer type, typically 53 feet long with a capacity of 42,000–45,000 lbs.

Question 22

What is deadhead in trucking?

Accepted Answer

Deadhead means a truck traveling empty without a load. Carriers try to minimize deadhead miles because they generate no revenue but still incur fuel and driver costs.

Question 23

What is a freight class?

Accepted Answer

Freight class is a standardized classification (class 50–500) used in LTL shipping based on density, stowability, handling, and liability. Lower class = lower rates.

Question 24

What is cross-docking?

Accepted Answer

Cross-docking is a logistics process where freight is unloaded from an incoming truck and loaded directly onto outbound trucks with minimal storage time, reducing handling and transit time.

Question 25

What is a rate confirmation?

Accepted Answer

A rate confirmation is a contract between a broker and carrier that specifies the load details, agreed rate, pickup/delivery dates, and terms. It's legally binding once signed.

Question 26

What is a carrier packet?

Accepted Answer

A carrier packet is a set of documents a carrier submits to a broker to become an approved partner. It includes MC authority, insurance certificates, W-9, operating agreement, and driver information.

Question 27

What is a load board?

Accepted Answer

A load board is an online marketplace where brokers post available loads and carriers search for freight. Popular load boards include DAT, Truckstop.com, and Amazon Relay.

Question 28

What is drayage?

Accepted Answer

Drayage is the short-distance transport of containers, typically between a port or rail terminal and a warehouse or distribution center. Indray offers comprehensive drayage services at major US ports.

Question 29

What is intermodal shipping?

Accepted Answer

Intermodal shipping combines two or more transportation modes (truck + rail, truck + ocean) in a single shipment. Containers are transferred between modes without handling the freight itself.

Question 30

What is a chassis in trucking?

Accepted Answer

A chassis is a wheeled frame used to transport shipping containers by truck. Chassis can be owned by carriers, leased from chassis pools, or provided by shipping lines.

Question 31

What is per diem in container shipping?

Accepted Answer

Per diem is a daily charge for using a shipping container or chassis beyond the free time allowed. It's separate from demurrage (port storage) and detention (container use outside the port).

Question 32

What is a freight factoring company?

Accepted Answer

A freight factoring company purchases a carrier's unpaid invoices at a discount, providing immediate cash flow. The factoring company then collects payment from the shipper or broker.

Question 33

What is ELD?

Accepted Answer

An ELD (Electronic Logging Device) is a device that records a driver's Hours of Service (HOS) automatically. ELDs are mandated by FMCSA for most commercial motor vehicles.

Question 34

What are Hours of Service (HOS)?

Accepted Answer

HOS regulations limit how long commercial drivers can operate. The most common rules: 11-hour driving limit after 10 consecutive hours off, 14-hour on-duty window, and 60/70-hour weekly limit.

Question 35

What is a dispatch service?

Accepted Answer

A dispatch service helps owner-operators and small carriers find loads, negotiate rates, and manage logistics. Dispatchers typically charge 5–10% of the gross load revenue.

Question 36

What is an owner-operator?

Accepted Answer

An owner-operator is a truck driver who owns their own truck and operates as an independent contractor, either finding their own loads or leasing on with a carrier.

Question 37

What is a shipper?

Accepted Answer

A shipper is the party that originates freight — the company that needs goods transported from one location to another. Shippers tender freight to carriers directly or through brokers.

Question 38

What is a consignee?

Accepted Answer

A consignee is the party receiving the freight at the delivery location. The consignee signs the POD confirming receipt and noting any damage or shortages.

Question 39

What is a 3PL?

Accepted Answer

A 3PL (Third-Party Logistics) provider manages logistics operations for shippers, including transportation, warehousing, and fulfillment. Indray offers comprehensive 3PL services.

Question 40

What is drop trailer?

Accepted Answer

Drop trailer means the carrier leaves a trailer at the shipper's facility for loading/unloading at their convenience, then picks it up later. Drop trailer service often incurs a daily fee.

Question 41

What is a live load/unload?

Accepted Answer

A live load or unload means the driver stays with the truck while it's being loaded or unloaded. The driver waits at the facility, which is why detention charges may apply if loading takes too long.

Question 42

What is a power only load?

Accepted Answer

Power only means the carrier provides just the tractor (power unit) and driver, while the trailer or container is provided by the shipper, broker, or another party.

Question 43

What is team driving?

Accepted Answer

Team driving uses two drivers who alternate driving and sleeping, allowing the truck to run virtually non-stop. Teams can cover 1,000+ miles per day vs. 500–600 for solo drivers.

Question 44

What is a weigh station?

Accepted Answer

A weigh station is a checkpoint where commercial trucks are weighed to ensure compliance with weight limits. The federal gross weight limit is 80,000 lbs for a standard 5-axle truck.

Question 45

What is a hazmat endorsement?

Accepted Answer

A hazmat endorsement is a special certification on a CDL required to transport hazardous materials. Drivers must pass a TSA background check and written exam to obtain it.

Question 46

What is a tanker endorsement?

Accepted Answer

A tanker endorsement is required to drive vehicles carrying liquid cargo in bulk tanks. Drivers must pass a written knowledge test specific to tank vehicle operations.

Question 47

What is a doubles/triples endorsement?

Accepted Answer

This CDL endorsement allows drivers to tow two or three trailers simultaneously. It requires passing a written knowledge test about coupling, handling, and braking for multiple trailers.

Question 48

What is a TWIC card?

Accepted Answer

A TWIC (Transportation Worker Identification Credential) is a biometric card required for unescorted access to secure areas of US maritime facilities and vessels.

Question 49

What is the Carmack Amendment?

Accepted Answer

The Carmack Amendment is federal law governing carrier liability for interstate freight. It makes carriers liable for the full actual loss or damage to goods in their possession, with limited exceptions.

Question 50

What is freight consolidation?

Accepted Answer

Freight consolidation combines multiple smaller shipments into one full truckload to reduce per-unit shipping costs. Brokers and 3PLs often coordinate consolidation for shippers.

Question 51

What is a freight claim?

Accepted Answer

A freight claim is a formal demand for payment filed against a carrier for damaged, lost, or short-shipped freight. Claims must be filed within 9 months of delivery (or scheduled delivery for lost freight).

Question 52

What is a distribution center?

Accepted Answer

A distribution center is a large warehouse facility used for receiving, storing, and shipping goods. It serves as a hub for sorting and redistributing products to retail locations or end customers.

Question 53

What is last-mile delivery?

Accepted Answer

Last-mile delivery is the final leg of transportation from a distribution center to the end customer's door. It's typically the most expensive and complex part of the supply chain.

Question 54

What is a bill of lading number?

Accepted Answer

A BOL number is a unique tracking number assigned to each shipment. It's used to track freight through the supply chain and reference the shipment in communications and claims.

Question 55

What is a commodity in freight?

Accepted Answer

A commodity is the type of goods being shipped. Commodity type affects freight classification, insurance requirements, equipment needs, and pricing.

Question 56

What is a truckload broker?

Accepted Answer

A truckload broker specializes in arranging FTL shipments between shippers and carriers. Indray Inc is a licensed truckload broker serving all 48 contiguous states.

Question 57

What is a carrier authority?

Accepted Answer

Carrier authority (MC Authority) is the legal permission granted by FMCSA to a carrier to transport freight for hire in interstate commerce.

Question 58

What is a broker authority?

Accepted Answer

Broker authority (MC-B) is FMCSA authorization to operate as a freight broker, arranging transportation of freight by motor carriers for compensation.

Question 59

What is a surety bond for brokers?

Accepted Answer

Freight brokers must maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85) to protect carriers and shippers against payment default.

Question 60

What is a dedicated truck?

Accepted Answer

Dedicated trucking assigns specific trucks and drivers to serve a single shipper's freight needs. It provides consistency, reliability, and often better service than spot market options.

Question 61

What is expedited freight?

Accepted Answer

Expedited freight is a premium service for time-critical shipments. It typically uses team drivers, direct routing, and minimal stops. Rates are 50–100% higher than standard freight.

Question 62

What is a partial load?

Accepted Answer

A partial load falls between LTL and FTL — too large for LTL pricing but doesn't fill an entire trailer. Partials offer FTL-like direct service at a reduced rate.

Question 63

What is a freight audit?

Accepted Answer

A freight audit reviews shipping invoices for accuracy, checking rates, accessorials, and charges against contracts. It helps shippers identify billing errors and recover overcharges.

Question 64

What is backhaul?

Accepted Answer

Backhaul is the return trip of a truck after delivering its primary load. Carriers offer discounted backhaul rates to avoid deadheading, making it a cost-effective option for shippers.

USA Trucking FAQ

Related Resources

Have More Questions?

USA Trucking FAQ

1. What is FTL (Full Truckload)?

2. What is LTL (Less-Than-Truckload)?

3. What is a freight broker?

4. How are trucking rates calculated?

5. What is detention in trucking?

6. What is layover?

7. What is TONU?

8. What is a lumper fee?

9. What is a Bill of Lading (BOL)?

10. What is a Proof of Delivery (POD)?

11. What is reefer freight?

12. What is flatbed trucking?

13. What insurance is required for carriers?

14. What is an MC number?

15. What is a DOT number?

16. How long does coast-to-coast trucking take?

17. How much does trucking cost per mile?

18. How do fuel surcharges work?

19. How do freight brokers make money?

20. What happens if freight is damaged?

21. What is a dry van trailer?

22. What is deadhead in trucking?

23. What is a freight class?

24. What is cross-docking?

25. What is a rate confirmation?

26. What is a carrier packet?

27. What is a load board?

28. What is drayage?

29. What is intermodal shipping?

30. What is a chassis in trucking?

31. What is per diem in container shipping?

32. What is a freight factoring company?

33. What is ELD?

34. What are Hours of Service (HOS)?

35. What is a dispatch service?

36. What is an owner-operator?

37. What is a shipper?

38. What is a consignee?

39. What is a 3PL?

40. What is drop trailer?

41. What is a live load/unload?

42. What is a power only load?

43. What is team driving?

44. What is a weigh station?

45. What is a hazmat endorsement?

46. What is a tanker endorsement?

47. What is a doubles/triples endorsement?

48. What is a TWIC card?

49. What is the Carmack Amendment?

50. What is freight consolidation?

51. What is a freight claim?

52. What is a distribution center?

53. What is last-mile delivery?

54. What is a bill of lading number?

55. What is a commodity in freight?

56. What is a truckload broker?

57. What is a carrier authority?

58. What is a broker authority?

59. What is a surety bond for brokers?

60. What is a dedicated truck?

61. What is expedited freight?

62. What is a partial load?

63. What is a freight audit?

64. What is backhaul?

65. What is a trailer interchange agreement?

66. What is a reefer trailer temperature range?

67. What is a freight lane?

68. What is accessorial in trucking?

69. What is a tariff in trucking?

70. What is pallet freight?

71. What is a step deck trailer?

72. What is a conestoga trailer?

73. What is a lowboy trailer?

74. What is a hot shot load?

75. What is linehaul in trucking?

76. What is a freight forwarder?

77. What is a USDOT number lookup?

78. What is a double brokering scam?

79. What is a quick pay in trucking?