A

Accessorial service: a service rendered by a carrier secondary to a transportation service. Examples are storage, reconsignment, stopping in transit to complete loading or to partially unload, etc.

Ad Valorem Tax: a charge levied on persons or organizations based on the value of transaction. It is normally a given percentage of the price at the retail or manufacturing state and is a common form of sales tax e.g., federal excise tax on new trucks and trailers. 

Agent: person authorized to transact business for and in the name of another. 

Assets: future economic benefits obtained by an entity as a result of past transactions or events.

ATA: American Trucking Associations, Inc. — serves the united interests of the trucking industry through a national federation of 50 independent state trucking associations plus the District of Columbia (each representing all classes and types of trucking operation), 12 independent conferences (each representing a special class or type truck operation) and the national headquarters. 

Audit of freight bills: the process of verifying if transportation charges shown on the carrier’s freight bill are reasonable. 

Automobile transporter: any company certified to transport motor vehicles by hauling them on special vehicles or driving them.

Average Annual Daily Truck Traffic (AADTT) – The total volume of truck traffic on a highway segment for one year, divided by the number of days in the year.

Axle weight: amount of weight transmitted to the highway by one axle.

B

Backhaul – The process of a transportation vehicle (typically a truck) returning from the original destination point to the point of origin. A backhaul can be with a full or partially loaded trailer.

Balance sheet: a financial statement listing all assets, liabilities, and owner’s equity at a certain date. 

Balloon freight: light, bulky cargo. 

Barge – The cargo-carrying vehicle that inland water carriers primarily use. Basic barges have open tops, but there are covered barges for both dry and liquid cargoes.

Basing point: a point in which rates to another destination are computed through. For example, a rate from Louisville, KY to a point near Jacksonville, Fl is computed as follows: The rate form Louisville to Jacksonville to the nearby point. Jacksonville, in this case, is the basing point. 

Basing rate: (see proportional rate) 

Belly Cargo – Air freight carried in the belly of passenger aircraft. 

Bill of Lading – A transportation document that is the contract of carriage containing the terms and condition between shipper and carrier.

Blue label: atomic material shipment.

Bobtail: truck operating without a trailer. 

Bogey: a two-axle assembly.

Bottleneck – A section of a highway or rail network that experiences operational problems such as congestion. Bottlenecks may result from factors such as reduced roadway width or steep freeway grades that can slow trucks.

Bottler’s body: truck or trailer body designed primarily for the transportation of cased bottled beverages. 

Box: trailer or semi-trailer. Also, the transmission of a motor vehicle.

Boxcar – An enclosed railcar, typically 40 or more feet long, used for packaged freight and some bulk commodities.

Breakbulk: to separate a composite load into individual shipments and route to different destinations.

Breakbulk Cargo – Cargo of non-uniform sizes, often transported on pallets, sacks, drums, or bags. These cargoes require labor-intensive loading and unloading processes. Examples of breakbulk cargo include coffee beans, logs, or pulp.

Bridge law: federal regulations specifying maximum weight based on the distance in feet between axles. 

Broker – A person whose business it is to prepare shipping and customs documents for international shipments. Brokers often have offices at major freight gateways, including border crossings, seaports, and airports.

Brokerage license: authority granted by Interstate Commerce Commission to persons engaged in the business of arranging for motor vehicle transportation of persons or property in interstate commerce.

Bulk Cargo – Cargo that is unbound as loaded; it is without count in a loose unpackaged form. Examples of bulk cargo include coal, grain, and petroleum products.

C

Cab: driver’s compartment of a truck or tractor-trailer.

Cabotage – A national law that requires costal and intercostal traffic to be carried in its own nationally registered, and sometimes built and crewed ships.

Camel back body: truck body with floor curving downward at the rear. 

Capacity – The physical facilities, personnel, and process available to meet the product of service needs of the customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service.

Cargo Ramp – A dedicated load/unload facility for cargo aircraft.

Carload – Quantity of freight (in tons) required to fill a railcar; amount normally required to qualify for a carload rate.

Carrier – A firm which transports goods or people via land, sea, or air.

Carrier’s lien: carrier’s claim on property it has transported as security for charges. 

Cartage (local) hauling between locations in the same town or city or contiguous municipalities. 

Certificate of Public Convenience and Necessity: authority of certificate granted by the ICC or state regulatory agencies and required of certain for-hire carriers. 

Centralized Dispatching – The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department and the shop manufacturing departments.

Charge backs: those costs assumed by the carrier for independent contractors. It is understood through the lease that these costs will be charged back to the independent contractor at a later date. 

Chassis – A trailer-type device with wheels constructed to accommodate containers, which are lifted on and off.

Circuitous route: an indirect route. 

City-liner: truck used in the city for pickup and delivery. Also called “cub,” “pickup,” “whoopee,” and “shags.”

Claim – Charges made against a carrier for loss, damage, delay, or overcharge.

Class I Carrier – A classification of regulated carriers based upon annual operating revenues-motor carrier of property greater than or equal to $5 million; railroads: greater than or equal to $50 million: motor carriers of passengers; greater than or equal to $3 million.

Class II Carrier – A classification of regulated carriers based upon annual operating revenues-motor carrier of property $1- $5 million; railroads: $10-$50 million: motor carriers of passengers; less than or equal to $3 million.

Class III Carrier – A classification of regulated carriers based upon annual operating revenues-motor carrier of property less than or equal to $1 million; railroads: greater than or equal to $10 million.

Classification (freight): a publication containing a list of articles and the classes to which they are assigned for the purpose of applying class rates, together with governing rules and regulations.

Classification Yard – A railroad terminal area where railcars are grouped together to form train units.

Clean bill of lading: a bill of lading signed by the carrier for receipt of merchandise in good condition (no damage, loss, etc., apparent) and which does not bear such notion as “shipper’s load and count.” 

Clearing house: an organization set up to process and collect bills from participating trucking companies. 

Coastal Shipping – Also known as short-sea or coastwise shipping, describes marine shipping operations between ports along a single coast or involving a short sea crossing.

Commodity – An Item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability.

Commodity tariff: a tariff containing only commodity rates.

Common Carrier – Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, whose services are for hire to the general public.

Concealed damage: a damage to the contents of a package which is apparently in good condition externally. 

Concealed loss: loss or damage that cannot be determined until the package is opened.

Consignee – The receiver of a freight shipment, usually the buyer.

Consignor – The sender of a freight shipment, usually the seller.

Container – A “box”‘ typically ten to forty feet long, which is used primarily for ocean freight shipment. For travel to and from ports, containers are loaded onto truck chassis’ or on railroad flatcars.

Container on Flatcar (COFC) – Containers resting on railway flatcars without a chassis underneath.

Containerization – A shipment method in which commodities are placed in containers, and after initial loading, the commodities per se are not re-handled in shipment until they are unloaded at destination.

Containerized Cargo – Cargo that is transported in containers that can be transferred easily from one transportation mode to another.

Contract Carrier – Carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs.

Convertible: a truck or trailer that can be used either as a flatbed or open top by means of removing side panels.

Cubage – Cubic volume of space being used or available for shipping or storage.

Cubic foot: a common measure of the capacity of a truck. 1,728 cubic inches.

Current assets and liabilities: assets which can be liquidated and liabilities due in less than one year.

D

Deadhead – The return of an empty transportation container back to a transportation facility. Commonly used description of an empty backhaul.

Destination: the place to which a shipment is to be delivered.

Detention: see demurrage. 

Detention Fee – The carrier charges and fees applied when rail freight cars, ship and carriers are retained beyond a specified loading or unloading time.

Demurrage – The carrier charges and fees applied when rail freight cars and ships are retained beyond a specific loading or unloading time.

Differential rate: the amount added to or subtracted from a through (basing) rate to make a rate. For example, the rate Chicago to Philadelphia is made up of the basis rate (Chicago to New York) less the differential basis (or rate) to Philadelphia.

Direct to store – Process of shipping direct from a manufacturer’s plant or distribution center to the customer’s retail store, thus bypassing the customer’s distribution center.

Dispatcher – An individual tasked to assign available transportation loads to available carriers.

Dispatching: the scheduling and control of intercity traffic and intracity pickup and delivery.

Distance rate: charge made on basis of miles traveled, often used as one component of a freight rate.

Distribution Center (DC) – The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores.

Dock – A space used or receiving merchandise at a freight terminal.

Dolly: an auxiliary axle assembly having a fifth wheel used for purpose of converting a semi-trailer to a full trailer. 

DOT: Department of Transportation

Double bottom: combination consisting of a truck tractor, a semi-trailer, and a full trailer coupled together.

Double-stack – Railcar movement of containers stacked two high.

Dray body: see camel back body.

Drayage – Transporting of rail or ocean freight by truck to an intermediate or final destination; typically, a charge for pickup/delivery of goods moving short distances (e.g., from marine terminal to warehouse).

Dromedary: a vehicle which combines features of a truck and truck tractor. It has a van body at the rear of the cab and a fifth wheel to the rear of the body.

Drop – A situation in which an equipment operator deposits a trailer or boxcar at a facility at which it is to be loaded or unloaded.

Dump body: truck or trailer body of any type which can be tilted to discharge its load by gravity.

Dunnage: the material used to protect or support freight in trucks. The weight of dunnage is shown separately on the bill of lading since it is material used around a cargo to prevent damage.

Dyno check: the placement of the power vehicle on a device which indicates horsepower delivered to the ground.

Durable Goods – Generally, any goods whose continuous serviceability is likely to exceed three years.

E

Elkins Act: a law providing penalties for giving rebates and other violations of the Interstate Commerce Act.

En route: on the way.

Entry (customs) a statement of the kinds, quantities, and values of goods imported together with duties due, if any, declared before a customs office or designated officer.

Escrow: money placed with a third person with direction to use it for a specific purpose, usually payment of taxes or insurance.

Exclusive use of truck: a request made by a shipper on the bill of lading for the complete use of a vehicle.

Exempt Carrier – A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far the largest portion of exempt carrier transports agricultural commodities or seafood.

Exempt commodity: a commodity that may be transported in both interstate and intrastate commerce without operating authority or published rates.

F

FCC: Federal Communications Commission. 

FICA: Federal Insurance Contribution Ac (Social Security). 

Fifth wheel: a device used to connect a semi-trailer and tractor. 

Fixed charges: carrier costs that do not vary with an increase or decrease in traffic. An accounting classification, sometimes called fixed operation costs. 

Flatbed – A trailer without sides used for hauling machinery or other bulky items.

Float: see flatbed. 

For-hire Carrier – Carrier that provides transportation service to the public on a fee basis.

Free-astray: a shipment miscarried or unloaded at the wrong terminal is billed and forwarded to the correct terminal free of charge because it is astray. Hence the term “free-astray.”

Free on board (FOB): usually indicates place where responsibility for expenses and risk for goods is passed from seller to buyer. For example, FOB motor carrier would usually mean that a price quoted for goods would include loading on a truck at the seller’s building. This term is not always used precisely and it’s best to qualify it to show exactly what is meant.

Free time: the period freight will be held before storage charges are applied. 

Freight All Kinds (FAK) – Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container that includes various classes of cargo.

Freight bill: document for a carrier shipment giving a description of the freight, its weight, amount of charges, the rate of charges, taxes, and whether it is collect or prepaid. If the charges are paid in advance or are to be collected at the origin, it is called a prepaid freight bill. If the charges are to be collected at the destination, it is called a destination or collect freight bill.

Freight charges: payment due for freight transportation. 

Freight Forwarder – A person whose business is to act as an agent on behalf of a shipper. A freight forwarder frequently consolidates shipments from several shippers and coordinates booking reservations.

Free Trade Zone (FTZ) – An area or zone set aside at or near a port or airport, under the control of the U.S. Customs Service, for holding goods duty-free pending customs clearance.

Fuel-Taxed Waterway System – Eleven thousand miles of the U.S. waterway system designated by the Water Resources Development Act of 1986. Commercial users of this system pay a per gallon fuel tax which is deposited in the Inland Waterways Trust Fund and used to fund inland navigation projects each year.

Four P’s – Set of marketing tools to direct the business offering to the customer. The four P’s are product, price, place and promotion.

Full trailer: truck trailer with wheels on both ends (as compared to a semi-trailer in which the front rests on the rear of the power unit. 

Furniture van body: Truck body designed primarily for transportation of furniture or household goods. Furniture van trailers are usually of drop frame construction. 

FUTA: Federal Unemployment Tax Act.

G

General freight carrier: a carrier which handles a wide variety of commodities, typically in LTL quantities and generally involves the use of terminal facilities to break and consolidate shipments. 

Goods: merchandise.

Grain body: low side open top truck or trailer body primarily designed to transport dry fluid commodities.

Grandfather rights: the right provided in the Motor Carrier Act for a common or contract carrier to obtain a certification of public convenience and necessity to operate over the route or routes, over which it or its predecessor in interest was in bona fide operation on June 1, 1935, without further proof of public convenience and necessity.

Gray area: except for those carrying certain exempt commodities, for-hire trucking companies must be certificated and regulated by state and federal governments. “Gray area” carriers illegally operate as for-hire carriers using some form of subterfuge or camouflage.

Gross combination weight (GCW) how much the entire rig weighs including tractor, trailer, and load.

Gross ton: 2,240 pounds. More commonly called a long ton. 

Gross Vehicle Weight (GVW) – The combined total weight of a vehicle and its freight.

Gypsy: an independent truck operator who drives his own truck and obtains freight wherever he can.

H

Hazardous Material – A substance or material which the Department of Transportation has determined to be capable of posing a risk to health, safety, and property when stored or transported in commerce.

Heater service: protection by heat of freight that would be damaged by freezing.

Heavy specialized carrier: a trucking company franchised to transport articles which because of size, shape, weight, or other inherent characteristics require special equipment for loading, unloading, or transporting.

High-cube: a body with above average cubic content. Usually constructed with low floors and thin walls.

High torque rise engines: the latest technology in fuel efficient engines.

Hopper body: truck or trailer body capable of discharging its load through a bottom opening without tilting.

Horse van body: truck or trailer body designed primarily for the transportation of valuable horses.

Hot load: emergency shipment of cargo needed in a hurry.

Hours of Service – Ruling that stipulates the amount of time a driver is allotted to work.

Household good miles: a source of mileage between points commonly used by shippers and carriers for freight rate purposes.

Hub – A common connection point for devices in a network. Referenced for a transportation network as in “hub and spoke” which is common in the airline and trucking industry.

I

In-bond Shipment – A shipment status in which goods are permitted to enter a country and temporarily stored for transport to a final destination where the duty will be paid.

Inbound Logistics – The movement of materials from shippers and vendors into production processes or storage facilities.

Independent contractor: the person who owns and operates a truck, leasing himself and/or his rig for hauling products interstate. Same as owner-operator.

Interline Freight – Freight moving from point of origin to destination over the lines of two or more transportation lines.

Intermodal terminal – A location where links between different transportation modes and networks connect. Using more than one mode of transportation in moving persons and goods. For example, a shipment moved over 1000 miles could travel by truck for one portion of the trip, and then transfer to rail at a designated terminal.

Initial carrier: the transportation line that picks up a shipment from the shipper.

Initial point: the point at which a shipment originates.

Insulated van body: van body designed primarily for transportation of commodities at controlled temperatures. It may be provided with equipment for refrigeration or heating.

Interchange points: a terminal where freight is transferred from one transportation line to another.

Interline freight: freight moving from point of origin to destination over the lines of two or more transportation companies.

Intermediate carrier (bridge): a transportation line hauling a shipment between the originating and delivery carrier.

Interstate: between states.

Intrastate: within a state.

Inventory – The number of units and/or value of the stock of good a company holds.

J

Jacket: a cover placed around such containers as cans and bottles.

Joint rate: a rate for hauling a single shipment over two or more independent transportation lines, which cooperate to offer a through service. The shipment travels on one bill of lading.

Joint routes: routes established by two or more connecting carriers for the continuous through-movement of traffic over their lines.

Just-in-Time (JIT) – Cargo or components that must be at a destination at the exact time needed. The container or vehicle is the movable warehouse.

 K

Knocked down: a term denoting that an article is partially or entirely taken apart (net set up).

Known damage: damage discovered before or at the time of delivery of a shipment.

Known loss: loss discovered before or at the time of delivery of a shipment.

L

Lading: that which constitutes a load; the freight in a vehicle.

Lawful rate: any rate constructed and published in accordance with the laws, rules and regulations administered by the ICC in interstate traffic, or by state commissions in intrastate traffic.

Layover time: the non-working time that a road driver spends away from his home terminal before being dispatched to some other destination.

Lead-time – The total time that elapses between an order’s placement and it receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.

Less-Than-Containerload/Less-Than-Truckload (LCL/LTL) – A container or trailer loaded with cargo from more than one shipper; loads that do not by themselves meet the container load or truckload requirements.

Level of Service (LOS) – A qualitative assessment of a road’s operating conditions. For local government comprehensive planning purposes, level of service means an indicator of the extent or degree of service provided by, or proposed to be provided by, a facility based on and related to the operational characteristics of the facility. Level of service indicates the capacity per unit of demand for each public facility.

Lift-on/Lift-off (lo/lo) Cargo – Containerized cargo that must be lifted on and off vessels and other vehicles using handling equipment.

Lift tail gate: a power-operated tail gate capable of lifting a load from street level to the level of the truck or trailer floor.

Line Haul – The movement of freight over the road/rail from origin terminal to destination terminal, usually over long distances.

Liquid Bulk Cargo – A type of bulk cargo that consists of liquid items, such as petroleum, water, or liquid natural gas.

Live axle: axle driven by engine.

Live Load – As situation in which the equipment operation stays with the trailer or boxcar while being loaded or unloaded.

Livestock body: truck or trailer body designed primarily for the transportation of livestock.

Loaded mile: distance traveled with a loaded trailer.

Local cartage carrier: a company that transports property entirely within the commercial zone of a municipality (or contiguous cities). This may be pickup and delivery service for a line haul carrier.

Local rate: a rate applying between stations located on the same transportation line.

Local tariff: a tariff containing rates applicable only between terminals located on the same transportation line.

Lock – A channel where the water rises and falls to allow boats to travel a dammed river.

Log body: truck or trailer body designed primarily for the transportation of logs or other loads which may be boomed or chained in place.

Logbook: a book carried by truck drivers containing daily records of hours, routes, etc. logbooks are required by ICC regulations.

Logistics – All activities involved in the management of product movement, delivering the right product from the right origin to the right destination, with the right quality and quantity, at the right schedule and price.

Long ton: 2,240 pounds.

Low-bed trailer: open truck trailer constructed to provide a low platform height. Designed for the transportation of extremely heave or bulky property.

Low-boy: see Low-bed trailer.

Lumpers – Individuals that assist a motor carrier owner operator in the unloading of property; quite commonly used in the food industry.