The Trucking Glossary
96 terms every carrier, dispatcher and owner-operator runs into — defined without the jargon.
Compliance
- IFTAIFTA is the International Fuel Tax Agreement, a fuel tax reporting arrangement among the lower 48 states and Canadian provinces. Qualifying carriers file one quarterly return reporting miles driven and fuel purchased in each jurisdiction, and the taxes are redistributed accordingly.
- IFTA Quarterly ReturnAn IFTA quarterly return is the report a licensed carrier files each quarter listing total miles and taxable miles driven in every jurisdiction along with gallons purchased there. The filing nets tax owed against tax already paid at the pump.
- Taxable MilesTaxable miles are the miles driven in an IFTA jurisdiction on public roads that count toward fuel tax liability. They exclude non-taxable miles such as certain fuel-trip-permit miles and, in some states, off-highway or toll-road miles.
- Hours of Service(HOS)Hours of service (HOS) are the federal rules limiting how long a commercial driver may drive and work. Property-carrying drivers get an 11-hour driving limit within a 14-hour window after 10 consecutive hours off, with a 60/7 or 70/8 cycle limit.
- 34-Hour RestartA 34-hour restart resets a driver's 60- or 70-hour weekly cycle after 34 consecutive hours off duty. It allows a driver who has run out of cycle hours to begin a fresh week without waiting for hours to roll off.
- Electronic Logging Device(ELD)An electronic logging device (ELD) is hardware connected to a commercial vehicle's engine that automatically records driving time, engine hours, movement and location to enforce hours-of-service rules. Most interstate carriers are required to use one.
- DOT AuditA DOT audit is an FMCSA review of a carrier's safety records — driver qualification files, hours-of-service logs, drug and alcohol testing, vehicle maintenance and accident registers. New carriers face a new-entrant safety audit within their first 12 months.
- Driver Qualification File(DQF)A driver qualification file (DQF) is the set of records a motor carrier must keep for each driver, including the application, MVR, road test certificate, medical examiner's certificate, previous employer inquiries and annual violation review.
- Motor Vehicle Record(MVR)A motor vehicle record (MVR) is the state-issued driving history for a CDL holder showing license status, endorsements, violations and suspensions. Carriers must pull an MVR at hire and annually thereafter.
- CSA Score(CSA)CSA scores are FMCSA safety measurements calculated from roadside inspections, violations and crashes across seven BASIC categories. High scores increase intervention risk, raise insurance premiums and cause some shippers to refuse a carrier.
- Roadside InspectionA roadside inspection is an examination of a commercial vehicle and driver by an enforcement officer, graded at levels I through VI. Level I is the full driver-and-vehicle inspection; Level II is walk-around; Level III is driver-only.
- Out of Service Order(OOS)An out-of-service (OOS) order prohibits a driver or vehicle from operating until a serious violation is corrected. Common triggers include brake defects, tire failures, HOS violations and invalid credentials.
- Commercial Driver's License(CDL)A commercial driver's license (CDL) is the license required to operate heavy or specialized commercial vehicles. Class A covers combination vehicles over 26,001 lbs; Class B covers single heavy vehicles; endorsements add hazmat, tanker, doubles and passenger authority.
- DOT Medical CardA DOT medical card is the medical examiner's certificate confirming a driver meets federal physical qualification standards. It is typically valid for up to 24 months and must be current and on file for every driver.
- Hazmat EndorsementA hazmat endorsement authorizes a CDL holder to transport hazardous materials requiring placards. It requires a written test, a TSA security threat assessment and fingerprint-based background check, renewed periodically.
- TWIC Card(TWIC)A TWIC (Transportation Worker Identification Credential) is the TSA-issued card required for unescorted access to secure areas of ports and maritime facilities. Drayage and port drivers generally need one.
- MC Number(MC)An MC number is the FMCSA-issued motor carrier operating authority number required to transport regulated commodities interstate for hire. It is separate from the USDOT number, which identifies the vehicle operation itself.
- USDOT Number(USDOT)A USDOT number is the unique identifier FMCSA assigns to a commercial motor carrier, used to track safety records, inspections, crashes and audits. Most interstate carriers and many intrastate operations are required to have one.
- BMC-91 FilingA BMC-91 or BMC-91X is the proof-of-insurance form an insurer files with FMCSA to satisfy a motor carrier's minimum public liability requirement, typically $750,000 to $5,000,000 depending on commodity.
- Cargo SecurementCargo securement is the federally regulated practice of restraining freight with straps, chains, binders and blocking so it cannot shift or fall. Rules specify minimum working load limits and tie-down counts by cargo type.
- International Registration Plan(IRP)The International Registration Plan (IRP) is the apportioned registration system that lets a commercial vehicle operate in multiple jurisdictions on one plate, with fees distributed based on miles driven in each.
- Apportioned PlateAn apportioned plate is the license plate issued under IRP that authorizes interstate operation across member jurisdictions, with registration fees divided by miles traveled in each.
- Unified Carrier Registration(UCR)Unified Carrier Registration (UCR) is an annual federal fee program for interstate motor carriers, brokers and freight forwarders, priced in brackets by fleet size.
- Heavy Vehicle Use Tax(Form 2290)The Heavy Vehicle Use Tax (Form 2290) is an annual federal tax on vehicles with a taxable gross weight of 55,000 lbs or more, filed with the IRS for the July-through-June tax period.
- Driver Vehicle Inspection Report(DVIR)A driver vehicle inspection report (DVIR) is the written record a driver completes documenting defects found during pre-trip and post-trip inspections, along with certification that defects were repaired.
- Annual DOT InspectionAn annual DOT inspection is the federally required yearly examination of a commercial vehicle by a qualified inspector, documented and kept on file or displayed as a decal.
- Drug and Alcohol ClearinghouseThe FMCSA Drug and Alcohol Clearinghouse is the federal database of CDL driver drug and alcohol program violations. Carriers must run pre-employment full queries and annual limited queries on every driver.
Equipment
- ChassisA chassis is the wheeled frame used to carry an intermodal container on the road. Drayage carriers rent chassis from pools, and splits, flips and daily rental fees are common billable events.
- ReeferA reefer is a refrigerated trailer with its own diesel-powered cooling unit, used to haul temperature-controlled freight such as produce, meat, dairy and pharmaceuticals at a specified set point.
- Set PointThe set point is the temperature a reefer unit is instructed to maintain for a load, specified by the shipper on the bill of lading. Continuous and cycle-sentry run modes affect how tightly it holds.
- Pre-CoolPre-cooling is running a reefer trailer down to the required temperature before loading so warm trailer walls do not raise product temperature during loading.
- Dry VanA dry van is an enclosed, non-refrigerated trailer, typically 53 feet, used for palletized and boxed general freight. It is the most common trailer type in North American trucking.
- FlatbedA flatbed is an open trailer with no walls or roof, used for freight that cannot be loaded through a dock door — steel, lumber, machinery and building materials. Loads must be secured and usually tarped.
- Step DeckA step deck, or drop deck, is a flatbed trailer with a lowered main deck that allows taller freight to be hauled legally without an oversize permit.
- Removable Gooseneck(RGN)A removable gooseneck (RGN) trailer detaches at the front so the deck lowers to the ground, letting heavy equipment drive on. It is standard for construction and heavy haul machinery moves.
- Gross Vehicle Weight Rating(GVWR)Gross vehicle weight rating (GVWR) is the maximum operating weight of a single vehicle including chassis, body, fuel, driver and cargo, as specified by the manufacturer.
- Gross Combination Weight Rating(GCWR)Gross combination weight rating (GCWR) is the maximum allowable weight of a power unit and its trailer combined, including cargo, as rated by the manufacturer.
Financial
- Fuel Tax CreditA fuel tax credit under IFTA is the amount of fuel tax you already paid at the pump in a jurisdiction, offset against the tax you owe there based on miles driven. Buying more fuel than you burn in a state produces a credit.
- Accessorial ChargeAn accessorial charge is any fee billed in addition to the base line-haul rate, such as detention, layover, tarping, liftgate, lumper, stop-off, driver assist or reconsignment. Accessorials often decide whether a load is profitable.
- DetentionDetention is the charge a carrier bills when a driver waits at a shipper or receiver beyond the agreed free time, typically two hours. It compensates for lost driving hours and is billed per hour after the free window.
- LayoverLayover is a charge billed when a driver is held overnight because a shipper or receiver cannot load or unload within the scheduled day. It compensates for the lost 24-hour earning period.
- Lumper FeeA lumper fee is the cost of third-party labor hired at a warehouse to load or unload a trailer, most common in grocery and food distribution. The driver often pays it up front and the carrier bills it back to the broker or shipper.
- Rate Per Mile(RPM)Rate per mile (RPM) is the load's total revenue divided by the miles required to run it. All-in RPM includes deadhead miles; loaded RPM does not, which is why the two numbers can differ sharply.
- Cost Per Mile(CPM)Cost per mile is the total cost of operating a truck divided by miles driven, including fuel, driver pay, insurance, maintenance, tires, permits, tolls and fixed overhead. It is the break-even number every load must clear.
- Operating Ratio(OR)Operating ratio is operating expenses divided by operating revenue, expressed as a percentage. An OR of 95 means 95 cents of every revenue dollar goes to expenses, leaving five cents of operating margin.
- Fixed CostsFixed costs are trucking expenses that accrue whether or not the truck moves: truck and trailer payments, insurance, permits, ELD subscriptions, software and base plates. They are the reason parked trucks lose money.
- Variable CostsVariable costs rise and fall with miles driven — fuel, tires, maintenance, tolls, per-mile driver pay and scale fees. They are the costs you can influence load by load.
- Cargo InsuranceCargo insurance covers loss or damage to the freight a carrier is hauling. Brokers commonly require $100,000 in coverage, with higher limits for high-value, reefer or pharmaceutical freight.
- Freight ClaimA freight claim is a demand for payment from a shipper or consignee for cargo that arrived damaged, short or late. Carriers are generally liable under Carmack Amendment rules unless an exception applies.
- Freight FactoringFreight factoring is selling an unpaid freight invoice to a factoring company for immediate cash, typically 90 to 97 percent of face value. The factor collects from the broker or shipper and keeps the fee.
- Quick PayQuick pay is a broker program that pays a carrier's invoice in a few days instead of the standard 30, in exchange for a discount typically between 1 and 5 percent of the load's revenue.
- Days to PayDays to pay measures the average number of days between invoicing a customer and receiving payment. For freight it commonly runs 30 to 45 days, and it drives how much working capital a carrier needs.
- Freight InvoiceA freight invoice is the bill a carrier sends for a completed load, showing line haul, accessorials, fuel surcharge, load and reference numbers, and supporting documents such as the rate confirmation, BOL and POD.
- Fuel Surcharge(FSC)A fuel surcharge is a per-mile charge added to the line haul rate that adjusts with diesel prices, protecting the carrier when fuel costs rise. It is typically pegged to the DOE national average diesel price.
- Driver SettlementA driver settlement is the pay statement showing what a driver earned for a period, itemizing loads, pay rate, accessorial pay and deductions such as fuel, escrow, insurance and advances, ending in net pay.
- Driver EscrowDriver escrow is money withheld from an owner-operator's settlements and held by the carrier as security for damage, fuel advances or equipment. Federal rules require accounting for it and returning the balance after termination.
- Per-Mile PayPer-mile pay compensates a driver a fixed rate for each mile driven, commonly using practical or household-goods mileage. It is the most common company-driver pay model in over-the-road trucking.
- Percentage PayPercentage pay compensates a driver with a set share of a load's revenue, commonly 25 to 30 percent for company drivers and 65 to 75 percent for owner-operators leased to a carrier.
- Lease PurchaseA lease purchase is an arrangement where a driver leases a truck from a carrier with payments applied toward eventual ownership. Terms vary widely and often shift maintenance and downtime risk onto the driver.
- Spot RateA spot rate is the one-time market price to move a single load right now, set by immediate supply and demand. Spot rates move fast with capacity, season, weather and fuel.
- Contract RateA contract rate is a negotiated price for a lane held over a defined period, typically six to twelve months, with committed volume. It trades upside for predictability.
- Container Per DiemContainer per diem is the daily charge an ocean carrier bills when a container is kept beyond the allowed free days outside the terminal. It accrues per container per day until the box is returned.
- DemurrageDemurrage is the charge assessed when a container sits inside a port or rail terminal beyond its free time. It is billed by the terminal or ocean carrier per container per day.
- Tarp PayTarp pay is an accessorial paid to a driver, and billed to the customer, for covering a flatbed load with tarps. It compensates for the significant physical labor and time involved.
- Notice of Assignment(NOA)A notice of assignment (NOA) is the letter a factoring company sends a broker directing that payment for the carrier's invoices be sent to the factor instead of the carrier.
Freight
- Bill of Lading(BOL)A bill of lading (BOL) is the legal document between shipper and carrier that describes the freight, its origin and destination, and the terms of carriage. It serves as a receipt for goods, evidence of the contract, and in some forms a document of title.
- Proof of Delivery(POD)Proof of delivery (POD) is the signed document or electronic record confirming the consignee received the freight, typically a signed bill of lading, delivery receipt, photo or timestamp. Most brokers will not pay an invoice without it.
- Rate Confirmation(Rate Con)A rate confirmation is the written agreement from a broker to a carrier stating the load's rate, stops, dates, reference numbers and terms. Signing it commits the carrier to haul the load at the stated price.
- Less Than Truckload(LTL)Less than truckload (LTL) freight is a shipment too small to fill a trailer, consolidated with other shipments and moved through terminal networks. Pricing depends on weight, freight class, distance and accessorials.
- Full Truckload(FTL)Full truckload (FTL) freight fills or reserves an entire trailer for a single shipper, moving directly from origin to destination without terminal handling.
- Freight ClassFreight class is the NMFC classification system that assigns LTL shipments a class from 50 to 500 based on density, stowability, handling and liability. Lower classes cost less to ship.
- NMFC Code(NMFC)An NMFC code is the National Motor Freight Classification identifier for a specific commodity, used to determine its LTL freight class and rating.
- ConsigneeThe consignee is the party receiving the freight at destination, named on the bill of lading. The consignee signs for delivery and notes any exceptions such as damage or shortage.
- ShipperThe shipper is the party tendering freight to a carrier for transport, named as the consignor on the bill of lading. The shipper sets pickup appointments and describes the commodity.
- Freight BrokerA freight broker is a licensed intermediary that arranges transportation between shippers and motor carriers without taking possession of the freight, earning the margin between the customer rate and the carrier rate.
Operations
- Deadhead MilesDeadhead miles are miles driven with an empty trailer, usually between a delivery and the next pickup. They consume fuel and hours without generating revenue, so they directly reduce a load's true rate per mile.
- BackhaulA backhaul is the return load a carrier books to avoid running empty back toward its home base or next origin. Backhaul rates are typically lower than headhaul rates but recover otherwise lost revenue.
- HeadhaulA headhaul is the primary, higher-paying direction of a freight lane — typically out of a region that produces more freight than it consumes. The opposite direction is the backhaul.
- Transportation Management System(TMS)A transportation management system (TMS) is software that manages freight operations end to end: booking loads, dispatching drivers, tracking documents, invoicing customers, paying drivers and reporting on profitability.
- DispatchDispatch is the function of assigning loads to drivers and equipment, communicating stop details and appointment times, and managing the load through pickup and delivery. Good dispatch balances hours, home time and equipment utilization.
- Load BoardA load board is a marketplace where brokers and shippers post available freight and carriers search for loads by lane, equipment type and date. Boards also provide lane rate data used in negotiation.
- DrayageDrayage is the short-haul movement of ocean or rail containers between a port or ramp and a nearby warehouse, yard or rail terminal. Moves are usually under 100 miles but subject to per diem, demurrage and chassis charges.
- Heavy HaulHeavy haul is the transport of loads exceeding standard legal weight limits, requiring state permits, specialized multi-axle equipment, approved routing and sometimes escort vehicles.
- Oversize LoadAn oversize load exceeds standard legal dimensions — generally 8.5 feet wide, 13.5 to 14 feet tall or 53 feet long — and requires state-issued permits, signage and often travel-time restrictions.
- Pilot CarA pilot car, or escort vehicle, travels ahead of or behind an oversize load to warn traffic and check clearances. Requirements vary by state based on the load's dimensions.
- IntermodalIntermodal freight moves in the same container across two or more modes — typically truck to rail to truck — without the cargo itself being handled during mode changes.
- Expedited FreightExpedited freight is time-critical shipping where the load moves directly and often continuously, frequently with team drivers, to meet a hard deadline such as a production line shutdown.
- Team DriversTeam drivers are two drivers assigned to one truck who alternate driving and rest, allowing the vehicle to run nearly continuously within hours-of-service rules.
- BobtailBobtailing is operating a tractor without a trailer attached. Handling and braking differ significantly from a loaded combination, and separate bobtail liability coverage is typically required.
- Drop and HookDrop and hook is dropping a loaded or empty trailer at a facility and hooking to another already-loaded trailer, eliminating live loading and unloading wait time.
- Live LoadA live load is when the driver waits at the facility while the trailer is loaded or unloaded, rather than swapping a pre-loaded trailer.
- Carrier PacketA carrier packet is the onboarding document set a broker collects before tendering freight: operating authority, W-9, certificates of insurance, a signed broker-carrier agreement and payment instructions.
- Trip SheetA trip sheet is the record of a single trip's miles by jurisdiction, fuel purchases, tolls and stops. It is the source document behind IFTA and IRP reporting.
- Preventive Maintenance(PM)Preventive maintenance (PM) is scheduled servicing performed at mileage, hour or calendar intervals — oil, filters, brakes, tires and inspections — to prevent failures rather than react to them.
- Estimated Time of Arrival(ETA)An estimated time of arrival (ETA) is the projected arrival time at a stop, calculated from current position, remaining distance, traffic and available hours of service.
- Check CallA check call is a status update from driver to dispatch or from carrier to broker confirming location, loading status and ETA, typically required at set intervals on a load.
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