42 Must Know Terms for the Transportation Industry

If you're new to the trucking industry, you probably find yourself overwhelmed by all of the common terms used in all parts of the industry. Learning these terms can be very confusing when you start, so here is list of 42 of the most important trucking terms you need to know when starting your business in the trucking industry.

Accounting

ACH - ACH payments are a way to transfer money from one bank account to another without using paper checks, credit card networks, or cash.

Factoring - Freight factoring, is a process in which the person or business that delivers a load sells their invoice to a factoring company.

Rate - A freight rate is a price at which a certain cargo is delivered from one point to another.

POD - Proof of Delivery.

BOL - Bill Of Lading.

TONU - “Truck Order Not Used” A charge that occurs when a shipper orders a truck, but for and reason, doesn’t end up using the truck that they ordered.

Common Terminology

COI - Certificate of Insurance.

Owner Operator - Owner Operators are truck drivers that own or lease their own semi truck, and drive it themself. Sometimes they have employees, but many owner operators are on their own.

Cargo - Freight or commodity being transported.

Consignee - Consignee is the person responsible for the receipt of a shipment, and is often referred to as the receiver.

LTL - A quantity of freight less than that required for the application of truckload rate; usually
less than 10,000 pounds.

Partial - Partial load refers to a load which only partially uses the available freight space of the means of transport.

TL - A full truck load; typically more than 10,000 pounds.

Hazmat - Hazardous materials.

Hot Load - A shipment that needs to be loaded and delivered fast.

Broker - Middle Man between shippers and carriers.

Carrier - An Individual owner-operator that transports the cargo.

Dispatcher - Dispatchers are usually carrier employees who act as intermediaries between drivers and shippers. They’re also generally a driver’s main point of contact with the company, and they have a wide range of job responsibilities.

ETA - Estimated Time of Arrival.

CDL - Commercial Drivers License.

Deadhead - Driving an empty trailer to go pick up a load. This doesn’t generate revenue for Owner Operators.

CPM - Cents Per Mile.

Log - System to keep track of their hours of service and miles on the road.

GCW - Gross Combination Weight. The weight of the entire truck, trailer, and cargo all together.

P&D - Pickup and delivery.

Power Only - Providing only truck.

Heavy Haul Freight - A term that describes when a load exceeds restrictions put forth by the government. Usually these loads are oversized because of weight, width, size, or height.

Team Driver - When two drivers work together so one can sleep while the other one drives, allowing freight to move as fast as possible while staying within federal hours of service regulations.

Equipment

FB - Flat Bed Trailer.

SD - Step Deck Trailer, also referred to as drop deck, these trailers have 2 levels.

Gooseneck Trailers - Trailer with a long, curved neck where other trailers might have a simple hitch.

Lowboy - Lowboy Trailers have 3 deck levels they are used to transport oversized loads.

Reefer - Refrigerated trailer.

Belly Dump - A dump trailer that unloads its commodity through a hole in the bottom of the trailer, unlike raising the bed like traditional dump trucks do.

Dry Van - Enclosed Trailer.

Tanker Trailer - Cylindrical Trailers used to transport asphalt, chemicals, fuel, dry food and beverages.

Tipper Trailer - Hydraulic Trailers to raise and title the platform and empty the load.

Other Terms

IFTA - International Fuel Tax Agreement, is an agreement among U.S. states and provinces in Canada that simplifies the reporting of fuel use taxes.

IRP - International Registration Plan, this is a reciprocity agreement among states of the US, the District of Columbia and provinces of Canada which recognizes the registration of commercial motor vehicles registered by other jurisdictions

Intrastate - Shipments that load and deliver within only one state.

Interstate - Shipments that load in one state and deliver across state lines in another state.

FMCSA - Federal Motor Carrier Safety Administration, the FMCSA is a government agency that regulates the trucking industry. They work to reduce crashes, injuries, and fatalities.