Untitled design (3)
<linearGradient id="sl-pl-bubble-svg-grad01" linear-gradient(90deg, #ff8c59, #ffb37f 24%, #a3bf5f 49%, #7ca63a 75%, #527f32)

Logistics Terminology

Stakeholders in the Trucking Industry

Understanding the key players in the logistics and trucking industry is essential for effective communication and collaboration. Below are the primary stakeholders involved in the freight shipping process:

Asset Carrier

A transportation company that owns and operates its own fleet of trucks. Asset carriers are responsible for the physical movement of goods from origin to destination.

Carrier

The entity responsible for transporting a shipment from its starting point to its destination. Carriers can be asset-based or non-asset-based, depending on whether they own their equipment.

Freight Broker

An intermediary that connects shippers with carriers. Freight brokers leverage their network of relationships to secure capacity, negotiate rates, and ensure the smooth transit of freight.

Receiver/Consignee

The party or business receiving the shipment at its destination. In some cases, the shipper and receiver may be the same entity.

Shipper

The party or business whose goods are being transported. Shippers are responsible for preparing and tendering freight for shipment.

Accessorial Charges in Freight Shipping

Accessorial charges are additional fees applied to freight shipments for services beyond standard pickup and delivery. These charges cover various scenarios that may arise during transit. Below is a breakdown of common accessorial charges:

Blind Shipment Charge

A fee assessed when a third party is instructed to withhold sensitive information about the shipper or receiver from the other party. Typically ranges from 100−200.

Detention

A charge applied when a driver is delayed beyond the allotted time for loading or unloading. The first two hours are usually free, with charges ranging from 50−75 per hour thereafter.

Driver Assist

A fee applied when a driver is required to assist with offloading cargo. Typically ranges from 100−150.

Hazmat

A surcharge for transporting hazardous materials, ranging from 150−500 depending on the material class and route.

Inside Pickup/Delivery

A fee applied when a driver must pick up or deliver freight outside the specified loading zone, commonly used for LTL shipments. Typically ranges from100−600.

Layover

A flat-rate charge applied when a shipper is not ready to load or unload upon the carrier’s arrival, often extending beyond one day. Typically ranges from 250−500, depending on equipment type.

Lumper Fee

A charge for third-party unloading services, separate from the carrier’s quoted rate. Typically ranges from 50−500+, depending on the complexity of the task.

Notification Before Delivery

A fee applied when the consignee requests advance notification of the freight’s arrival. Typically $50.

Over-Dimensional Cargo

A fee to cover permits and additional costs for shipping cargo that exceeds legal size limits. Costs vary based on the shipment’s dimensions and route.

Re-consignment

A charge applied when the destination of a shipment is changed after it is already in transit. Costs vary depending on the circumstances.

Stop Charge

A fee applied for each additional stop required to fulfill a shipment’s delivery requirements. Typically ranges from 75−100 per stop.

Tanker Endorsement

A charge for shipping 1,000 gallons or more of liquid in a dry van. Typically ranges from 100−1,000, depending on the route.

Tarp Charge

A fee for using a tarp to protect goods on an open-deck trailer. Typically ranges from 100−150.

Truck Order Not Used (TONU)

A charge applied when a shipper orders a truck but does not use it. Typically ranges from 200−600.

Common Truck Terms

Understanding the terminology used in trucking operations is essential for effective communication and safety. Below are key terms every logistics professional should know:

Blind Shipment Charge

A fee assessed when a third party is instructed to withhold sensitive information about the shipper or receiver from the other party. Typically ranges from 100−200.

Detention

A charge applied when a driver is delayed beyond the allotted time for loading or unloading. The first two hours are usually free, with charges ranging from 50−75 per hour thereafter.

Driver Assist

A fee applied when a driver is required to assist with offloading cargo. Typically ranges from 100−150.

Hazmat

A surcharge for transporting hazardous materials, ranging from 150−500 depending on the material class and route.

Inside Pickup/Delivery

A fee applied when a driver must pick up or deliver freight outside the specified loading zone, commonly used for LTL shipments. Typically ranges from100−600.

Layover

A flat-rate charge applied when a shipper is not ready to load or unload upon the carrier’s arrival, often extending beyond one day. Typically ranges from 250−500, depending on equipment type.

Lumper Fee

A charge for third-party unloading services, separate from the carrier’s quoted rate. Typically ranges from 50−500+, depending on the complexity of the task.

Notification Before Delivery

A fee applied when the consignee requests advance notification of the freight’s arrival. Typically $50.

Over-Dimensional Cargo

A fee to cover permits and additional costs for shipping cargo that exceeds legal size limits. Costs vary based on the shipment’s dimensions and route.

Re-consignment

A charge applied when the destination of a shipment is changed after it is already in transit. Costs vary depending on the circumstances.

Stop Charge

A fee applied for each additional stop required to fulfill a shipment’s delivery requirements. Typically ranges from 75−100 per stop.

Tanker Endorsement

A charge for shipping 1,000 gallons or more of liquid in a dry van. Typically ranges from 100−1,000, depending on the route.

Tarp Charge

A fee for using a tarp to protect goods on an open-deck trailer. Typically ranges from 100−150.

Truck Order Not Used (TONU)

A charge applied when a shipper orders a truck but does not use it. Typically ranges from 200−600.

Tractor

The truck or semi used to pull a trailer, commonly referred to as the “power unit.”

Placard

Warning signs placed on all four sides of a trailer carrying hazardous materials, indicating the type of hazard.

Trucking Industry Cost-Related Terms

Understanding cost-related terms is crucial for managing expenses and optimizing logistics operations. Below are key terms and their definitions:

Cents Per Mile (CPM)

The cost of a shipment calculated per mile, often used in conjunction with Rate Per Mile (RPM).

Collect on Delivery (COD)
  1. Collect on Delivery (COD):
    A payment method where the receiver pays for the freight upon delivery, as outlined in the Bill of Lading (BOL).
Contract Rates

Agreed-upon rates between a shipper and carrier for a specific lane over a set period.

Fuel Surcharge (FSC)

An additional fee based on the U.S. National Average Fuel Index, designed to offset fluctuating fuel costs.

Rate Per Mile (RPM

The pricing of a shipment on a per-mile basis, commonly used in freight negotiations.

Spot Market

Pricing for freight based on current market conditions, typically used for non-contract shipments.

Length of Haul (LOH)

The Length of Haul (LOH) refers to the distance a shipment travels, typically measured in miles. LOH is a critical factor in determining pricing, capacity, and logistics planning. Below are the common categories of haul lengths:

Short-Haul

Shipments traveling 249 miles or less. Ideal for regional deliveries.

Mid-Haul

Shipments traveling between 250 and 400 miles. Often used for medium-distance freight.

Tweener

Shipments traveling between 401 and 800 miles. A mid-range distance that bridges short-haul and long-haul.

Long-Haul

Shipments traveling between 801 and 1,200 miles. Typically involves cross-country or interstate transport.

Extended-Long Haul

Shipments traveling over 1,200 miles. Often used for cross-continental or international freight.

Types of Trucking Equipment

The trucking industry relies on a variety of specialized trailers and equipment to transport different types of freight. Below is an overview of the most common equipment types:

Chassis

A specialized trailer designed to transport ocean containers over the road. Commonly used in rail yards and shipping ports.

Conestoga

An open-deck trailer featuring a retractable tarping system. Combines the protection of a dry van with the loading flexibility of an open deck.

Dry Van

A fully enclosed trailer, typically 53 feet in length, used to transport consumer goods and commodities. Ideal for protecting cargo from the elements.

Double Drop/Lowboy

An open-deck trailer with elevated front and rear sections and a lower middle well. Often used to transport tall or oversized loads while staying within legal height limits.

Drop-Deck/Step-Deck

An open-deck trailer with an upper deck and a lower rear section, providing additional height clearance for taller loads. Offers up to 19 inches of extra loading height compared to flatbeds.

Extendable Drop-Deck

A specialized drop-deck trailer with an extendable middle section, designed to haul longer or taller freight.

Extendable RGN (Removable Gooseneck)

A trailer with a removable gooseneck that can be extended to accommodate large construction or agricultural equipment. Provides extra height and length capacity.

Flatbed

A traditional open-deck trailer with no sides or roof, offering continuous loading space. Typically ranges from 48 to 53 feet in length.

Hot Shot

A smaller trailer towed by a Class 3-6 pickup truck. Ideal for lighter loads and time-sensitive deliveries, but with limited weight capacity.

Jeep Dolly

A short trailer with a sliding fifth wheel and kingpin, used to connect the main trailer to the tractor. Often used in

Low-Profile Step-Deck

A step-deck trailer with a lower profile than traditional models, providing up to 6 inches of additional height clearance.

Mini-Deck RGN

Similar to a double drop/lowboy but with a lower profile. Used to transport exceptionally tall loads while meeting legal height restrictions.

MiReeferni-Deck RGN

A temperature-controlled trailer used to transport refrigerated or frozen goods. Ensures cargo remains at the required temperature during transit.

Removable Gooseneck (RGN)

A trailer with a detachable gooseneck, creating a ramp for loading and unloading large machinery.

Stinger Dolly

A 1-3 axle unit attached behind the main trailer to assist in transporting heavy loads. Also known as a “tail-wagger.”

Other Common Transportation Terms and Phrases

The logistics and trucking industry is filled with specialized terms and phrases that are essential for effective communication and operations. Below are some of the most commonly used terms:

Back-Haul

A return load that allows a carrier to transport freight back to their original location, reducing empty miles and optimizing efficiency.

Blind Shipment

A shipment where the shipper or receiver’s identity is withheld from the other party, often for confidentiality or competitive reasons.

Bill of Lading (BOL)

A legally binding document that serves as a receipt for freight services, detailing the shipment’s contents, origin, destination, and terms. It is critical for invoicing and tracking.

Bobtailing

Operating a truck without a trailer attached, often occurring when a driver is returning to their base after a delivery.

Common Carrier

A transportation company that offers services to the general public, rather than being dedicated to a single customer.

Contract Carrier

A carrier that operates under a written agreement to provide transportation services for specific customers.

Dead-Heading

Driving an empty trailer, often after delivering a load, which can result in inefficiencies and increased costs.

Dedicated Truck

A truck reserved exclusively for a single customer’s freight, ensuring consistent service and capacity.

Drop Trailer Service

A service where a driver leaves a trailer at a facility for loading or unloading at the customer’s convenience.

Federal Motor Carrier Safety Administration (FMCSA)

The U.S. government agency responsible for regulating the trucking industry, ensuring safety and compliance.

First Come, First Serve (FCFS)

A priority system where trucks are loaded or unloaded in the order they arrive at a facility.

Force Majeure

A clause in shipping contracts that relieves parties of liability in the event of unforeseen disruptions, such as natural disasters or extreme weather.

Freight Forwarder

A company that arranges the shipment of goods on behalf of shippers, often handling international logistics.

Gross Combined Weight Rating (GCWR)

The maximum allowable weight of a fully loaded truck and trailer combination, including cargo, and fuel.

Gross Vehicle Weight Rating (GVWR)

The maximum weight a vehicle is designed to safely carry, including its own weight and cargo.

Heavy Haul Freight

Freight that exceeds standard legal limits for weight, height, length, or width, requiring specialized equipment.

Hours of Service (HOS)

Regulations that limit the number of hours a driver can operate a commercial vehicle, ensuring safety and preventing fatigue.

Intermodal

The use of multiple transportation modes (e.g., rail, ship, and truck) to move freight, often improving efficiency and reducing costs.

Lead Time

The time between when a shipment is requested and when it is scheduled for pickup, often tied to the urgency of the delivery.

Less-Than-Truckload (LTL)

A shipping method for freight that does not require the full capacity of a truck, allowing multiple shippers to share space.

Load Tender

A formal offer from a shipper to a carrier, detailing the shipment’s requirements, including scheduling, equipment, and special instructions.

Over-Dimensional

Freight that exceeds standard legal size limits, requiring special permits and equipment for transport.

Over-The-Road (OTR)

Refers to long-haul trucking operations, where drivers transport freight over extended distances and periods.

Pilot Cars

Vehicles that accompany oversized or heavy-haul shipments, providing warnings and ensuring safe passage.

Power Only

A service where a carrier provides a truck and driver but does not supply the trailer, often used for specialized equipment.

Re-Power

The process of replacing a truck that has broken down with a new one to continue transporting a load.

Shipping Lane

A specific route regularly used by carriers to transport freight between two points.

Team of Drivers

Two drivers who work in shifts to transport freight over long distances, reducing delivery times and improving efficiency.