Terminology

This glossary contains common industry jargon so you can navigate your shipping and logistics vocabulary with confidence.

3PL (Third-Party Logistics)
A company that manages logistics services on behalf of a business. This can include transportation, warehousing, order fulfillment, and more. 3PLs often integrate multiple services under one roof to streamline supply chains.

Accessorial Charges
Additional fees for services beyond basic pickup and delivery—like detention, layover, or liftgate use.

Backhaul
A return trip for a truck, ideally with a paying load. Brokers use backhauls to optimize cost and reduce deadhead miles.

Bill of Lading (BOL)
A legal document between shipper and carrier that lists what's being shipped, where it’s going, and who’s responsible.

Broker (Freight Broker)
A licensed intermediary who connects shippers with carriers. Brokers don’t take possession of freight—they arrange transportation.

Carrier Packet
A set of required documents for onboarding a carrier with a broker. Includes W-9, insurance certificate, MC authority, and agreement.

Chassis
A wheeled frame used to move shipping containers over the road, often used in drayage or port work.

Consignee
The person or business receiving the shipment.

Customs Clearance
The process of gaining approval for goods to enter or leave a country, usually handled by a customs broker or freight forwarder.

Deadhead
When a truck travels empty (without freight), usually after a delivery or while heading to the next pickup.

Detention (D&D, Delay & Detention)
Extra charges billed when a driver is held up at a shipper or receiver location beyond the agreed free time.

Dispatch
Assigning a driver to a load and managing trip coordination between pickup and delivery.

Double Brokering
When a carrier or broker re-brokers a load to another carrier without prior consent from the shipper. This is unethical and often violates contracts. If not properly disclosed and approved, the material/equipment hauled may not be insured in case of damage or accident!

Drayage
Short-distance freight transport, usually moving containers between ports, rail terminals, and local warehouses.

Freight Bill
An invoice from the carrier to the shipper or broker for completed transportation services.

Freight Forwarder
A company that arranges and manages shipments—often internationally—and may take possession of freight. They often handle customs, warehousing, and multimodal coordination.

Freight Broker
An agent who arranges freight transportation between shippers and carriers. Brokers never physically handle the freight.

Load Board
An online platform where brokers post available loads and carriers look for freight to haul.

LTL (Less Than Truckload)
Freight that doesn’t require a full trailer. Multiple shipments are combined in one truck to share space and cost.

Logistics
The planning and execution of moving goods from origin to destination, including storage, transport, and coordination.

MC Number
A number issued by the FMCSA to carriers and brokers operating in interstate commerce. Required for legal operations.

Over-the-Road (OTR)
Long-haul trucking that crosses state lines and involves extended trips.

Pallet
A wooden or plastic base used to stack and move cargo more efficiently with a forklift.

Rate Confirmation (Rate Con)
A document confirming the terms of a load between a broker and a carrier. Includes rate, pickup/delivery info, and payment terms.

Reefer
A refrigerated trailer used to transport temperature-sensitive freight such as food, flowers, or medicine.

Shipper
The person or company that sends freight.

Shipper of Record
The party responsible for the load’s documentation and condition at the start of transit—usually the original shipping customer.

Tender (Load Tender)
An offer made by a shipper or broker to a carrier to move a load. Accepting the tender confirms the job.

Third-Party Logistics (3PL)
A logistics provider that handles services on behalf of a business—like transportation, warehousing, and order fulfillment. 3PLs often act as operational extensions of their clients.

Trailer Interchange
An agreement allowing one carrier to transfer a trailer to another for delivery, without unloading and reloading the freight.

Transportation Management System (TMS)
Software used by brokers, carriers, and 3PLs to plan, execute, and track freight shipments across the supply chain.

TL

Manifest

PAPS (CAN Customs)

POD

Scale Ticket

Bond