Transportation Terminology (Part 1: A — L)
A Reference Guide
Like many industries, transportation has its own vocabulary and, like trying to communicate in a foreign language, misuse or misunderstanding of terminology can cause great confusion; in fact, it can mean the difference between success and failure.
To help you become acquainted with the World of Transportation, the following is a list of widely used industry terms to help with deciphering bills, articles, comments and communications made by transportation professionals — and the mainstream media — in reference to all things ‘transportation.’
Welcome to our World.
The Essential Glossary: A — L
• Accessorial Charge: Amount billed for additional, supplemental or special services provided — usually a flat fee (ex: tarps, dunnage, layovers, detention, etc.)
• All-in Line Haul: FSC + Line Haul
• Backhaul (Head haul): The return movement of a transportation vehicle from its delivery point back to its point of origin
• Bill of Lading (BOL): Paper document between a shipper and carrier acknowledging the receipt of goods for transport; describes the nature of the cargo, amount of cargo by weight, size and/or number of pieces, and the origin and destination of cargo
• Broker (freight): Individual or company that serves as a liaison between another individual/company needing shipping services and an authorized motor carrier; determines the needs of a shipper and connects that shipper with a carrier capable of transporting the items at an acceptable price
• Carrier: Utilizes trucks and/or trailers to move goods from point A to B
• Coil Racks: Prefabricated cradles made of wood or steel made to hold rolled coils to keep them from rolling on a trailer
• Compliance, Safety, and Accountability (CSA): An FMCSA (part of DOT) program designed to alert motor carriers and drivers about potential safety problems in an effort to reduce large truck and bus crashes, injuries and fatalities
• Commodity: Any article of commerce — raw material, manufactured or grown products
• Consignee: The person or location to whom the shipment is to be delivered
- Container (Shipping Container): Box or crate used to transport freight by ship, rail or highway
• Distribution Center (DC): Holding area where goods and materials are stored until they can be moved to their final destination
• Dead-Heading: Operating a truck without cargo
• Declared Value: The value of a shipment imported for resale, as declared by the shipper or owner
• Dedicated Team: A team of drivers who take turns driving a dedicated truck
• Dedicated Truck: Carrying freight for a specific customer when only that load is on the truck
• Detention/Demurrage: Charge by the carrier for excess retention of their equipment — typically caused by untimely loading or unloading
• Door-to-Door: Synonymous with Thru Trailer Service (TTS) but can also mean simply handling the shipment from the shipper to the consignee
• Double Drop: A flatbed with the lowest deck — as seen on oversized or over-height loads
• Department of Transportation (DOT): Oversees US federal highway, air, railroad, maritime and other transportation administration functions
• DOT Number: License administered to for-hire carriers by the Department of Transportation — not the same as Motor Carrier #
• Dunnage: Filler material placed in empty spaces to prevent cargo from moving or falling — the dreaded packing peanuts, foam padding, inflatable bags or lumber
• Duty Status: Drivers are required to maintain a daily 24-hour logbook (Record of Duty Status) documenting all work and rest periods — available on demand to law enforcement.
• Escorts: Vehicles designated to assist in the movement of OVERSIZED LOADs
• Excess Value: Amount of declared value of a shipment above the carrier’s limit of liability
• Expedited: Shipping at a faster rate than normal — including overnight and/or air services
• Federal Motor Carrier Safety Administration (FMCSA): DOT agency that enforces safety regulations for commercial motor carriers
• Freight Class: Category of freight as defined by the National Motor Freight Traffic Association identifying size, value and difficulty of transporting a load — determining shipping charges
• Freight Forwarder: Facilitates shipping of goods for a third party (similar to a ‘Freight Broker’ but typically handles international goods, is defined as a carrier and can be held responsible for claims and loss of cargo)
• Fuel Surcharge (FSC): Because fluctuations in the price of fuel can substantially change the cost of moving freight, transportation companies will often include a FSC to their charges either based on cents per mile or percentage of the line haul amount.
• Hazmat: Hazardous materials as classified by the US Environmental Protection Agency (EPA)
• Hot Shot: Smaller trailers pulled by larger pickup trucks — typically 24–40 ft long
• Hours of Service (HOS): Regulations limiting when and how long drivers may drive
- Interchange Agreement: Agreement between companies to transfer control of a trailer in order to pick up and deliver shipments — common along US border towns
• Intermodal: A single trailer or container requiring multiple forms of transport along its route — such as truck/ship or truck/rail
• Just in Time (JIT): Manufacturing system dependent on small, frequent deliveries of parts and supplies to minimize on-site inventory
• Lane: A move from point A to point B. A lane run on a regular basis is referred to as a ‘dedicated lane.’
• Layover: When a driver is detained overnight or for a 24-hour period waiting to pick up or deliver a shipment
• Line Haul: Rate per mile in dollars and cents for transporting items
• Logbooks: Required by the US DOT, books maintained by truck drivers in which they record their hours of service and duty status for each 24-hour period
• Less-Than-Truckload (LTL): Quantity of freight less than that required for the application of a full truckload (FTL) rate
Alkane thanks Chuck Intrieri , writing for Cerasis.com, for this extensive list of industry terms and explanations.
Alkane Truck Company is currently raising capital on the crowdfunding platform StartEngine. Find out more here: https://www.startengine.com/startup/alkane
