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This glossary defines the freight and trucking terms shippers, carriers and brokers use every day. Each definition is short and self-contained, links to the related guide or tool, and cites the federal source where the term is regulatory.
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Freight and trucking glossary
Definitions of the terms that come up when you post, bid on or haul a load. Pick a term for the full entry.
A
- Accessorial charges
- Accessorial charges are fees for services beyond basic transport, such as a liftgate, inside delivery, detention, layover, lumper fees, tolls or extra stops. A bid that looks cheap can leave them out, so ask whether a rate is all-in.
- Auto liability insurance
- Auto liability insurance, often called BIPD, covers bodily injury and property damage a truck causes to other people. Federal minimums for for-hire carriers depend on vehicle weight and cargo: $750,000 for non-hazardous property in vehicles of 10,001 pounds or more, and $300,000 for lighter vehicles.
B
- Backhaul
- A backhaul is a load carried on the return leg of a trip, turning what would be a deadhead leg into a paid one. Lanes where carriers can usually find a backhaul tend to be easier to cover.
- Bill of lading (BOL)
- A bill of lading is the shipping document that records what is being shipped, who the shipper, carrier and consignee are, and where it is going. It acts as a receipt for the freight, evidence of the contract of carriage and, once signed on delivery, proof of what was received.
- BMC-84 (broker bond)
- A BMC-84 is the surety bond a freight broker files with FMCSA, with a federal minimum of $75,000. It gives carriers and shippers a way to claim if a broker fails to meet its obligations. A BMC-85 trust fund agreement is an alternative form of financial security.
- Box truck
- A box truck, also called a straight truck, has its cargo box and cab on a single frame, typically 16 to 26 feet long. It carries partial loads and local or regional freight, often with a liftgate. Whether a CDL is needed depends on its GVWR.
C
- Cargo insurance
- Cargo insurance covers loss of or damage to the freight a carrier is hauling. It is separate from the liability insurance federal rules require, so ask for it on the certificate of insurance and check the limit against the value of your freight.
- Cargo van
- A cargo van, such as a Sprinter, Transit or ProMaster, carries small, time-sensitive loads that do not need a larger truck. On FreightBidder the equipment type is called Sprinter Van.
- Certificate of insurance (COI)
- A certificate of insurance is a document from an insurer showing the coverage a company holds, its limits and its dates. Ask a carrier for one rather than relying on a public record, and have it name you as certificate holder where that matters.
- Consignee
- The consignee is the person or company named on the bill of lading to receive the freight. The consignee usually signs for the delivery and should note any damage or shortage when doing so.
- Contract rate
- A contract rate is a price agreed in advance between a shipper and a carrier or broker, usually for a lane or set of lanes over a fixed period. It gives both sides predictability, but it can differ from what the spot market pays on a given day.
D
- Deadhead
- Deadhead is the miles a truck drives empty, for example from a delivery to the next pickup or back home. It earns no revenue but still costs fuel, time and wear, so carriers weigh it when deciding what to bid.
- Detention
- Detention is a fee a carrier charges when it is made to wait at a pickup or delivery beyond the free time allowed. The free time and the hourly rate are set in the rate confirmation or contract, so check them before awarding a load.
- Double brokering
- Double brokering is when a carrier or broker that accepted a load passes it on to another carrier without the shipper’s knowledge or consent. It breaks the chain of accountability: the shipper may not know who is hauling the freight or whether that carrier is insured.
- Dry van
- A dry van is an enclosed, non-refrigerated trailer, most commonly 53 feet long, used for palletized and boxed freight. It is the most common truckload equipment type.
F
- Flatbed
- A flatbed is an open trailer with no sides or roof, used for oversize or heavy freight that is loaded from the side or top, such as steel and machinery. Loads usually need straps and tarps. Step deck and lowboy trailers are variants for taller freight.
- FMCSA
- FMCSA, the Federal Motor Carrier Safety Administration, is the U.S. Department of Transportation agency that regulates commercial trucking safety and registers carriers and brokers.
- Freight bidding
- Freight bidding is a way of pricing a load in which a shipper posts it and carriers submit competing offers, instead of the shipper accepting a single quote. The shipper compares the bids and awards the load.
- Freight broker
- A freight broker arranges the movement of freight between a shipper and a carrier without hauling it. Brokers need federal broker authority and a surety bond or trust fund. FreightBidder is a bidding platform, not a broker.
- Fuel surcharge
- A fuel surcharge is an extra charge, often a per-mile or percentage amount, that adjusts a rate as diesel prices change. Ask whether a bid already includes it.
- Full truckload (FTL)
- Full truckload shipping uses a truck’s whole capacity for one shipper’s freight, going from pickup straight to delivery without other customers’ freight on board. It suits larger shipments or freight that should not be handled repeatedly.
G
- GVWR
- GVWR, gross vehicle weight rating, is the maximum loaded weight a vehicle is built to carry, as set by its manufacturer. It decides whether a CDL is needed: a single vehicle with a GVWR of 26,001 pounds or more requires a Class B license.
I
- Interstate vs. intrastate
- Interstate freight crosses state lines; intrastate freight starts and ends in one state. A carrier that only operates within one state may not hold interstate operating authority, which is why FreightBidder lets an intrastate-only carrier bid only on single-state loads.
L
- Lane
- A lane is a route between an origin and a destination, such as Chicago to Atlanta, used to talk about freight volume and rates. Carriers often build their business around a few lanes they run regularly.
- Layover
- A layover is a charge for holding a truck overnight or longer, usually because a load is not ready or cannot be received on the planned day. Like detention, it should be agreed in advance.
- Less-than-truckload (LTL)
- LTL shipping moves smaller shipments that share trailer space with other customers’ freight, usually through a network of terminals. It costs less than a dedicated truck for small loads but involves more handling and longer transit.
- Liftgate
- A liftgate is a hydraulic platform on the back of a truck that raises and lowers freight to ground level, used when there is no loading dock. Many box trucks and some vans have one, and a load that needs one should say so when it is posted.
- Load board
- A load board is an online marketplace where shippers and brokers post available loads and carriers search for freight to haul. Boards differ in cost, in how carriers are vetted, and in whether carriers can bid or must accept a posted rate.
- Lumper fee
- A lumper is a third-party worker who unloads trucks at some warehouses, and the lumper fee is what that service costs. Who pays it depends on the agreement, so settle it before the delivery.
M
- MC number (docket number)
- An MC number is the docket number FMCSA issues with operating authority, which carriers and brokers need to haul or arrange regulated freight for hire across state lines. A carrier that only hauls within one state generally does not need one.
- Motor carrier
- A motor carrier is a company that transports freight by truck for payment. Carriers range from owner-operators with one truck to large fleets, and need a USDOT number and, for interstate for-hire freight, operating authority.
- Motus
- Motus is FMCSA’s registration system, which replaced its legacy registration systems in 2026. Public data feeds can lag it, so a status that looks wrong in a third-party lookup may be out of date; confirm in SAFER or Motus.
O
- Operating authority
- Operating authority is the federal permission FMCSA grants a company to haul regulated freight for hire across state lines (carrier authority) or to arrange it (broker authority). It can be active, inactive or revoked, and checking its status is a core step in vetting a carrier.
- Out-of-service rate
- An out-of-service (OOS) rate is the share of a carrier’s roadside inspections that ended with a vehicle or driver ordered off the road for a safety violation. A rate well above the national average is worth asking the carrier about.
- Owner-operator
- An owner-operator is a driver who owns or leases their truck and runs it under their own authority or another carrier’s. They choose their loads and carry the costs of fuel, maintenance and insurance.
P
- Power only
- A power-only load is one where the carrier supplies only the tractor and driver and hauls a trailer that the shipper or broker provides.
- Proof of delivery (POD)
- Proof of delivery is the signed record that freight was delivered, usually the bill of lading signed by the receiver, sometimes with photos. Carriers typically need it to invoice for the load.
R
- Rate confirmation
- A rate confirmation is a document in which the carrier and the shipper or broker confirm the agreed price and terms for a load, usually with pickup and delivery details, accessorials and detention terms. It is the record to point to in a dispute.
- Reefer
- A reefer is a refrigerated trailer or truck that holds a set temperature range for freight such as produce, frozen food and some pharmaceuticals.
S
- SAFER
- SAFER, the Safety and Fitness Electronic Records system, is FMCSA’s free public website for looking up a carrier’s USDOT number, authority status, safety rating, inspections and crash data.
- Safety rating
- An FMCSA safety rating is a compliance rating of Satisfactory, Conditional or Unsatisfactory, given after a compliance review. Many carriers have no rating at all, which is not a warning sign on its own.
- Shipper
- The shipper is the person or company that has the goods and arranges for them to move. On the bill of lading the shipper is the party sending the freight, as distinct from the consignee who receives it.
- Spot rate
- A spot rate is the price for moving a single load now, agreed for that shipment alone. It moves with supply and demand on the lane, unlike a contract rate, which is fixed for a period.
T
- Tender
- To tender a load is to formally offer it to a carrier to haul, and the carrier accepts or declines the tender. In freight bidding, awarding a carrier’s bid is the shipper’s acceptance of that carrier’s offer.
U
- USDOT number
- A USDOT number is the identifier FMCSA assigns to a company that operates commercial vehicles, used to track its safety record, inspections and crashes. It is separate from an MC number, which is operating authority to haul regulated freight for hire across state lines.
Definitions are general information, not legal advice. For regulatory questions, check the cited source or FMCSA directly. Missing a term? Tell us.