The vocabulary of freight operations.

3PL (Third-Party Logistics)

A company that provides outsourced logistics and supply chain services — warehousing, fulfillment, transportation management, or a combination — on behalf of a shipper. 3PLs may act as asset-based carriers or non-asset-based brokers depending on the service.

Accessorial

A charge added to a base freight rate for services beyond standard pickup and delivery, such as detention, liftgate, fuel surcharge, residential delivery, inside delivery, or redelivery. Accessorials must be identified in the rate confirmation or carrier contract to be billable.

Bill of Lading (BOL)

The legal contract between shipper and carrier. It lists commodity, weight, piece count, origin, destination, and any special instructions. The BOL serves as the receipt of goods and establishes the terms of carriage. Required for delivery and for filing freight claims.

Blind Shipment

A shipment where the shipper's identity, the consignee's identity, or both are concealed from one or more parties in the transaction. Brokers use blind shipments to protect their customer relationships. The carrier receives a BOL with masked addresses.

Broker

A licensed intermediary that arranges freight transportation between shippers and carriers without taking physical possession of the freight. Freight brokers must hold a Federal Motor Carrier Safety Administration (FMCSA) operating authority (MC number) and a surety bond.

Carrier

A company or individual owner-operator that physically moves freight. Asset-based carriers own their own trucks and trailers. Carriers operate under an MC (motor carrier) number issued by FMCSA and are subject to federal safety regulations including hours of service.

Check Call

A scheduled outbound call or message from a dispatcher to a carrier to confirm load location and estimated time of arrival (ETA). Typically performed every 4–8 hours on transit days. Missed check calls are an early indicator of a load at risk of service failure.

COD (Cash on Delivery)

A payment arrangement where the consignee pays the carrier at the time of delivery. The carrier collects payment (check, certified funds, or cash depending on the agreement) before releasing the freight. Common in certain commodity segments and small brokerage transactions.

Consignee

The party receiving the freight at the destination address. The consignee signs the delivery receipt and notes any exceptions, shortages, or visible damage on the BOL at the time of delivery. Their signature is required for proof of delivery.

Consignor

The party shipping the freight — also called the shipper. The consignor hands the freight to the carrier at origin and is named on the BOL. The consignor is responsible for proper packaging, correct commodity description, and accurate weight declaration.

Contract Rate

A pre-negotiated freight rate established between a shipper and carrier (or broker) for a defined lane, volume, and time period — typically 12 months. Contract rates provide cost predictability for shippers and volume guarantees for carriers. Contrast with spot rate.

Cover

To assign a carrier to a load and confirm pickup. "Did you cover that load?" means "Did you find a carrier, agree on rate, send the rate confirmation, and have it signed?" A load is not covered until the carrier has confirmed in writing.

Cross-dock

A logistics process where inbound freight from one carrier is unloaded, sorted by destination, and immediately loaded onto outbound trailers without being stored in a warehouse. Reduces handling time and storage costs. Used heavily in LTL networks and retail distribution.

Deadhead

Miles driven by a truck with no freight loaded, also called empty miles. Carriers factor expected deadhead into their pricing. A load that repositions a truck near its home base or into a strong freight market commands a lower rate than one that leaves the driver stranded.

Detention

A charge assessed when a carrier's truck is held beyond the allotted free time at a shipper's or consignee's facility — typically two hours. Detention rates are negotiated on the rate confirmation. Accurate detention requires timestamped arrival and departure records.

Drayage

Short-distance trucking, typically from a port or rail terminal to a nearby warehouse or distribution center. Drayage moves intermodal containers the 'first mile' or 'last mile' between ocean/rail and over-the-road transport. Drayage carriers operate near major port complexes.

Drop Trailer

An arrangement where the carrier leaves an empty or loaded trailer at a shipper's or consignee's dock for loading or unloading at their convenience. The carrier picks up the trailer later. Drop trailer programs reduce detention by decoupling loading from truck departure.

Dry Van

The most common trailer type — an enclosed box trailer used for general, non-temperature-sensitive freight. Standard dimensions are 53 feet long, 102 inches wide, and 110 inches tall inside. Dry vans cannot be temperature-controlled.

EDI (Electronic Data Interchange)

A standardized format for exchanging freight documents electronically between trading partners. Key transaction sets: 204 (load tender from shipper to carrier), 214 (shipment status update), 210 (carrier invoice), 997 (functional acknowledgment). EDI eliminates manual data entry and accelerates document exchange.

Factoring

A financial arrangement where a carrier sells its accounts receivable (freight invoices) to a factoring company at a discount — typically 2–5% — in exchange for immediate payment. Factoring solves the cash flow gap created by standard net-30 to net-60 broker payment terms.

Flatbed

An open trailer with no sides or roof, used for oversized, heavy, or oddly-shaped freight that cannot fit in a dry van or requires crane or forklift loading from the side. Common loads: steel coil, lumber, machinery, construction equipment, pipe.

Freight Claim

A formal demand filed by the shipper or consignee against the carrier for loss or damage to freight during transit. Claims are governed by the Carmack Amendment for domestic US shipments. The carrier has a defined timeframe to acknowledge, investigate, and pay or deny the claim.

Freight Class

A standardized classification system (classes 50 through 500) used in LTL shipping to group commodities by density, stowability, handling difficulty, and liability. Higher freight classes indicate lower-density or higher-risk freight and command higher rates per hundredweight.

FTL (Full Truckload)

A shipment that occupies an entire trailer — either by weight (typically over 20,000 lbs), by space, or by agreement. FTL shipments move directly from origin to destination without stops. Also referred to as TL (truckload).

Fuel Surcharge (FSC)

A variable charge added to the base freight rate to account for diesel price fluctuations. Most carriers and brokers publish FSC schedules tied to the weekly US Department of Energy national retail diesel average. FSC is recalculated weekly and applied as a percentage of the linehaul rate.

Hazmat

Hazardous materials regulated by the US Department of Transportation (DOT) under 49 CFR Parts 100–185. Hazmat shipments require special placarding, packaging, labeling, and carrier certification. Improper hazmat handling carries significant legal penalties.

Intermodal

Freight moved using two or more modes of transportation — most commonly truck and rail. A container is loaded at origin, hauled by truck to a rail ramp, transported by rail to a destination ramp, and drayaged to the consignee. Intermodal is cost-effective on long hauls (500+ miles).

Lane

A specific freight corridor defined by origin and destination, typically at the city or region level. Lanes are the fundamental unit of freight pricing. A carrier's cost to move freight on any lane is heavily influenced by available backhauls from the destination.

LTL (Less Than Truckload)

Freight that does not fill an entire trailer. LTL carriers consolidate multiple shippers' freight onto one trailer, moving each shipment through a hub-and-spoke terminal network. LTL pricing is based on freight class, weight, and distance.

Lumper

A third-party worker hired to unload freight at a consignee's dock — common at grocery distribution centers and big-box retailer warehouses. Lumper charges are an accessorial typically paid by the driver and then reimbursed by the broker per the rate confirmation terms.

NMFC (National Motor Freight Classification)

The classification system maintained by the National Motor Freight Traffic Association (NMFTA) that assigns freight classes (50–500) to commodity categories. NMFC codes determine the freight class and therefore the rate for LTL shipments.

OS&D (Over, Short & Damaged)

A notation made on the delivery receipt or BOL when freight arrives in a different quantity or condition than expected. Over means more pieces arrived than expected; Short means fewer arrived; Damaged means visible physical damage. OS&D notations are required to preserve freight claim rights.

Pallet

A flat transport structure, typically 48" × 40" for standard North American sizes, on which freight is stacked and secured for handling by forklift or pallet jack. Pallet count and weight are declared on the BOL and are the primary unit of measure in LTL shipping.

POD (Proof of Delivery)

A signed document — typically the delivery receipt or BOL — confirming that freight was received by the consignee at the destination. POD is required to invoice shippers in most brokerage contracts. Delays in POD collection delay invoicing and extend days-sales-outstanding.

Power Only

A move where the carrier supplies only the tractor — no trailer. The shipper provides a loaded trailer, and the carrier hauls it to the destination and drops it. Power only is common in drop-trailer programs and dedicated fleet arrangements.

Pro Number

A unique alphanumeric tracking number assigned to a shipment by the carrier. Used to identify and track the load through the carrier's system. In LTL, the PRO number is the primary reference for tracking and billing. In TL, the equivalent is the load number.

Quick Pay

A premium payment option where a broker pays the carrier faster than standard net-30 terms — typically within 24–48 hours of receiving a valid invoice and POD — in exchange for a fee, usually 2–3% of the load amount. Quick pay programs improve carrier cash flow without factoring.

Rate Confirmation

The binding document that confirms the agreed rate between broker and carrier for a specific load. Must be signed by the carrier before dispatch. Includes origin, destination, pickup date, commodity, weight, special instructions, payment terms, and all accessorials. The rate confirmation governs billing disputes.

Reefer (Refrigerated Trailer)

A temperature-controlled trailer equipped with a refrigeration unit. Used for perishable freight: produce, dairy, meat, pharmaceuticals, and other temperature-sensitive goods. Reefer moves require pre-cooling the trailer before loading and maintaining a set temperature range throughout transit.

Shipper of Record

The legal party responsible for the freight in a shipment — the entity named on the BOL as the consignor. In brokered freight, the shipper of record is typically the broker's customer, not the broker. The designation affects liability and freight claim standing.

Short Pay

When a shipper pays less than the invoiced amount, typically disputing an accessorial charge such as detention, lumper, or fuel surcharge. Brokers must resolve short pays with supporting documentation: rate confirmation, timestamps, lumper receipts. Unresolved short pays become write-offs.

Spot Rate

A one-time freight rate negotiated for a single shipment based on current market supply and demand. Spot rates fluctuate daily based on available truck capacity, fuel prices, and lane volume. Shippers rely on spot markets when contract capacity is exhausted.

Tender

To offer a load to a carrier for acceptance. A tender includes load details, pickup and delivery requirements, rate, and terms. Carriers accept or decline tenders. Electronically, tenders are exchanged via EDI 204 (load tender) and acknowledged via EDI 990 (response).

TONU (Truck Ordered Not Used)

A penalty charge assessed when a broker or shipper orders a truck and then cancels after the carrier has already committed — repositioned equipment, turned down other loads. TONU rates are negotiated on the rate confirmation and typically range from $150 to $300.

Transload

Moving freight from one mode or trailer type to another at an intermediate facility. Common example: unloading an ocean container at a port transload facility and reloading onto domestic 53-foot dry van trailers for inland distribution. Transloading reduces drayage distances.