3PL
Third party logistics. A company performing a supply chain function for a customer under contract.
Broader than broker. A 3PL may also warehouse, manage, or handle international freight.
Heard on a floor“They use a 3PL for their whole network.”
Every industry has a private language and freight has a dense one, spoken fast. A rep will say a load is a live load tendered at nine that fell off, so they are covering it cold with a bad deadhead. Six words in that sentence do specific work, and if you do not know them you have understood nothing.
Worse, you cannot ask, because asking about all six makes you look like you should not be in the room. So most new people nod, look up two of them later, and spend six months assembling the rest.
This page removes those six months. It is free, there is nothing to sign up for, and it is a genuine extract from Freight Foundations rather than a teaser.
The parties
Broker
A company that arranges transportation between shippers and carriers without owning trucks.
Paid the difference between what the customer pays and the carrier costs.
Heard on a floor“We are a broker, we do not own assets.”
Carrier
The company that owns the truck and physically moves the freight.
May be one truck or ten thousand. Most are very small.
Heard on a floor“Which carrier did you book?”
Consignee
The party receiving the freight. Where the load delivers. Often shortened to “cons”.
Their appointment rules usually cause more problems than the shipper's.
Heard on a floor“Cons will not take it without an appointment.”
Dispatcher
The person at a carrier who assigns loads to drivers.
At small carriers this is often the owner. At large ones it is a full desk.
Heard on a floor“Let me call his dispatcher.”
Freight forwarder
A broker whose focus is international freight, and who typically takes responsibility for the cargo in transit.
The responsibility part is the real difference from a domestic broker.
Heard on a floor“That is a forwarder, not a broker.”
Owner operator
A driver who owns their own truck. Often abbreviated O/O.
Makes their own decisions about which loads to take, so you are negotiating with the person driving.
Heard on a floor“He is an owner operator, one truck.”
Shipper
The party sending the freight. Where the load picks up.
Sometimes the customer paying you, sometimes not. Do not assume.
Heard on a floor“The shipper opens at seven.”
Team
Two drivers in one truck, alternating so the truck barely stops.
Roughly doubles the daily distance. Expensive, and the right answer for long urgent freight.
Heard on a floor“That transit only works with a team.”
The load
Book
To formally commit a carrier to a load. Slightly stronger than covered.
Booking usually means the rate confirmation has gone out and been signed.
Heard on a floor“I booked it with a carrier out of Memphis.”
Bounce
When a carrier who committed to a load backs out before pickup.
Bounces are the main reason a covered load becomes uncovered. Tracked per carrier and per rep.
Heard on a floor“He bounced it an hour before pickup.”
Contract
Freight priced for a period, usually a year, at an agreed rate.
Won through a bid. Predictable volume, thinner margin, and it locks you in when the market moves.
Heard on a floor“That lane is contract until June.”
Cover
To find a carrier for a load. The single most used verb on a brokerage floor.
A load is “covered” when a carrier has committed. It does not mean the truck has arrived.
Heard on a floor“Is 84117 covered yet?”
Fall off
Same as a bounce. A carrier who accepted the load and then did not run it.
Used interchangeably with bounce. Some brokerages distinguish them by how late the cancellation came.
Heard on a floor“The truck fell off this morning.”
Hot load
A load that must move, whatever it takes, usually because the customer relationship depends on it.
Being called hot changes the economics. You will pay above market rather than fail.
Heard on a floor“This is a hot one, do not let it roll.”
Lane
A repeated origin and destination pair. Chicago to Dallas is a lane whether you move it once or four hundred times.
Lanes matter because a carrier who runs one repeatedly gets better at it and cheaper on it.
Heard on a floor“We move that lane about forty times a month.”
Load
A single shipment moving from one place to another. The basic unit of everything.
A brokerage measures almost everything in loads: loads per day, loads per rep, loads covered.
Heard on a floor“How many loads did we move yesterday?”
Roll
When a load does not pick up or deliver on its scheduled day and moves to the next.
A rolled load is not lost, but it is late and somebody has to tell the customer.
Heard on a floor“That one rolled to tomorrow.”
Spot
Freight priced load by load at whatever the market is that day.
Spot is the opposite of contract. Higher risk, higher potential margin, no commitment either way.
Heard on a floor“That one is spot, price it today.”
Tender
When a customer formally offers you a load. You accept it or reject it.
On contracted freight the customer tenders and expects you to take it. Rejecting too often costs you the award.
Heard on a floor“They tendered it at nine this morning.”
Movement and lanes
Backhaul
A load that takes a carrier back toward where they want to be, usually home or to a dense market.
Cheaper, because the alternative for the carrier is running empty. This is where rate advantage comes from.
Heard on a floor“He will take it cheap, it is his backhaul.”
Deadhead
Miles a driver runs empty, usually to reach the pickup.
Pure cost to the carrier. A carrier with 200 miles of deadhead needs a higher rate to make the same money.
Heard on a floor“The deadhead is brutal, that is why nobody is biting.”
Drop and hook
The driver drops an empty trailer and takes a loaded one, without waiting.
Fast. Carriers prefer it because there is no dwell at the dock.
Heard on a floor“It is a drop and hook, he will be in and out.”
Dwell
Time a truck spends waiting at a facility.
The thing detention is measured from, and the biggest hidden cost in trucking.
Heard on a floor“Average dwell at that facility is four hours.”
Headhaul
An outbound load from a market where there is more freight than trucks.
Favours the carrier. Rates are higher because they have options.
Heard on a floor“Out of Atlanta is a headhaul right now.”
Linehaul
The miles actually travelled with freight on the trailer, from pickup to delivery.
This is the part you are paying the carrier for. It excludes the empty miles to get there.
Heard on a floor“Linehaul on that one is 970 miles.”
Live load
The driver waits while the trailer is loaded.
Slower and riskier for the carrier, because the clock is running while they sit.
Heard on a floor“Shipper is a live load, budget two hours.”
Live unload
The driver waits while the trailer is unloaded.
Same problem at the other end, and where most detention comes from.
Heard on a floor“Receiver is a live unload with a 6am appointment.”
Out of route
Miles driven outside the direct route, usually for an extra stop or a detour.
Billable, because it is time and fuel the carrier did not plan for.
Heard on a floor“That stop adds 60 out of route miles.”
Equipment
Chassis
The wheeled frame a shipping container sits on to move by road.
Owned separately from the container and a constant source of drayage problems.
Heard on a floor“No chassis available at the terminal.”
Dry van
An enclosed trailer with no temperature control. The most common trailer on the road.
53 foot is standard, 48 foot still exists. Loaded from the rear.
Heard on a floor“Standard dry van, no special requirements.”
Flatbed
An open deck trailer with no walls or roof. Loaded from the top or the side.
Securement is skilled work. Treating it as a van with no walls is how claims happen.
Heard on a floor“Flatbed, needs tarps and straps.”
Pallet position
A floor space for one standard pallet. A 53 foot trailer holds 26, a 48 foot holds 24.
How LTL and partial freight is measured and priced.
Heard on a floor“Six pallet positions, floor loaded.”
Reefer
A refrigerated trailer. Also used for heated freight described as protect from freeze.
The setpoint and whether it runs continuous or cycle both matter, and both cause claims.
Heard on a floor“Reefer at 34 degrees, continuous.”
Seal
A numbered tag applied to a closed trailer door to show it has not been opened.
The number goes on the BOL. A broken or mismatched seal is a claim.
Heard on a floor“Seal number does not match the BOL.”
Step deck
A flatbed with a lower rear section, allowing taller freight to stay legal.
Used when the load is too tall for a standard flatbed.
Heard on a floor“It is too tall for a flat, needs a step deck.”
Tare weight
The weight of the empty tractor and trailer.
Subtract it from the legal maximum to get how much freight you can actually carry.
Heard on a floor“His tare is heavy, he can only take 43,000.”
Paperwork and money
All in
A rate that includes everything, with no additional charges to follow.
Say it explicitly. Ambiguity here is where disputes come from.
Heard on a floor“Twenty-two hundred all in.”
BOL
Bill of lading. The document that travels with the freight and records what was picked up and in what condition.
It is a receipt, a contract, and a document of title all at once. It decides liability.
Heard on a floor“Get me a copy of the BOL.”
Buy rate
What you pay the carrier.
Your cost. The number you are trying to get down without losing the truck.
Heard on a floor“Buy rate is eighteen hundred.”
Carrier packet
The set of documents a carrier provides to be set up with a broker.
Authority, insurance, W9, signed agreement. The starting point of vetting.
Heard on a floor“They have not returned the carrier packet yet.”
Collect
The consignee is responsible for paying the freight charges.
The receiver pays. Common in some retail and industrial freight.
Heard on a floor“That one is collect.”
DOT number
Department of Transportation number. Identifies the company operating commercial vehicles.
Used with the MC number to check safety and inspection history.
Heard on a floor“Run the DOT number before you book.”
Fuel surcharge
A separate charge that moves with fuel prices, quoted apart from the linehaul.
Exists so rates do not need renegotiating every time diesel moves.
Heard on a floor“Linehaul plus fuel surcharge.”
Gross profit
Sell rate minus buy rate. What you actually made on the load.
The number a brokerage lives on. Often just called GP.
Heard on a floor“Three hundred GP on that one.”
Margin
Gross profit as a percentage of the sell rate.
Brokers say margin when they mean gross profit percentage. Both get used loosely.
Heard on a floor“That is a fourteen percent margin.”
MC number
Motor Carrier number. The federal operating authority number issued to a carrier.
How you verify a carrier is who they say they are.
Heard on a floor“What is their MC?”
POD
Proof of delivery. The signed document confirming the freight arrived and in what condition.
If damage is not noted on the POD, proving it later is very hard.
Heard on a floor“Clean POD, so we have a problem.”
Prepaid
The shipper is responsible for paying the freight charges.
One of three billing arrangements marked on the BOL.
Heard on a floor“It is prepaid, bill the shipper.”
Rate con
Rate confirmation. The document sent to the carrier stating the load details and the agreed rate.
Signed by the carrier, it is what commits both sides.
Heard on a floor“I will send the rate con now.”
Sell rate
What the customer pays you.
Your revenue on the load.
Heard on a floor“We sold it at twenty-one.”
Third party
Neither the shipper nor the consignee pays. A third party is responsible.
Often a 3PL or a billing company the customer uses.
Heard on a floor“Third party bill to, here is the address.”
Charges
Accessorial
Any charge beyond the base transportation rate.
Detention, lumper, layover and the rest. Where margin quietly disappears.
Heard on a floor“Any accessorials on that load?”
Demurrage
A charge for a container sitting inside a terminal past its free time.
Intermodal and drayage only. Charged by the terminal or railroad.
Heard on a floor“It has been sitting three days, demurrage is running.”
Detention
A charge for a driver waiting at a facility beyond an agreed free period, usually two hours.
The most common accessorial and the most commonly unbilled.
Heard on a floor“He sat five hours, we owe detention.”
Driver assist
A charge when the driver is required to help load or unload.
Most drivers are not obliged to touch freight, so it is billable when asked.
Heard on a floor“They wanted driver assist, that is extra.”
Layover
A charge when a driver has to wait overnight because loading or unloading cannot happen that day.
More expensive than detention, because it costs the carrier a full day.
Heard on a floor“They could not unload, so it is a layover.”
Lumper
A third party paid to load or unload the trailer, common at grocery and food warehouses.
The driver usually pays on site and gets reimbursed. Keep the receipt.
Heard on a floor“Lumper fee was two hundred, we will reimburse.”
Per diem
A daily charge for keeping a container or chassis out past the allowed days.
Different from demurrage. This one is for equipment outside the terminal.
Heard on a floor“Return the empty or per diem starts.”
Reconsignment
A charge for changing the destination or consignee after the load is in transit.
The customer changed their mind and the truck is already moving.
Heard on a floor“They reconsigned it to a different DC.”
Redelivery
A charge for returning to deliver on a different day after a failed attempt.
Usually caused by a missed appointment or a refusal.
Heard on a floor“They turned him away, so redelivery tomorrow.”
Stop off
A charge for each additional pickup or delivery beyond the first.
Each stop costs the driver time and adds out of route miles.
Heard on a floor“Two stop offs on that one.”
TONU
Truck ordered not used. A charge when a truck is dispatched and then the load is cancelled.
Fair, because the carrier gave up other freight to take yours.
Heard on a floor“Customer cancelled, we owe him a TONU.”
Risk and compliance
Authority
Federal permission to operate as a carrier or a broker.
Without active authority, they cannot legally haul your freight.
Heard on a floor“Check their authority is active.”
Auto liability
Insurance covering damage or injury caused by the truck.
Usually $1,000,000. Separate from cargo cover and covers a different thing entirely.
Heard on a floor“Auto liability is in place, cargo expired.”
Cargo insurance
Insurance covering the freight itself while in the carrier's possession.
Standard limits are often $100,000. High value freight needs more.
Heard on a floor“Cargo limit is only fifty thousand.”
Claim
A demand for payment after freight is damaged, lost, or short.
Handled against the carrier's cargo insurance, and the POD usually decides the outcome.
Heard on a floor“We have a damage claim on 84117.”
Double brokering
When a carrier you booked hands the load to a different carrier without telling you.
You no longer know who has your freight or whether they are insured. A serious problem.
Heard on a floor“That was double brokered, the MC does not match.”
ELD
Electronic logging device. Automatically records a driver's hours.
Mandatory since 2017. It is why hours can no longer be stretched.
Heard on a floor“His ELD says two hours left.”
Hours of service
Federal limits on how long a driver may drive and work.
Eleven hours driving inside a fourteen hour window. Not negotiable, and enforced by ELD.
Heard on a floor“He is out of hours, he cannot make it tonight.”
OS&D
Overage, shortage and damage. The three ways freight arrives wrong.
Overage means more than expected. Shortage means less. Damage speaks for itself.
Heard on a floor“OS&D report came in, two cases short.”
Safety rating
An FMCSA assessment of a carrier: satisfactory, conditional, or unsatisfactory.
A conditional rating is a warning sign and, after 2026, a legal exposure.
Heard on a floor“They are conditional, I would not use them.”
Process
Appointment
A scheduled time slot for pickup or delivery.
Missing one can mean waiting a day or more for the next available slot.
Heard on a floor“The appointment is 0600, he has to be there.”
Check call
A call or automated update confirming where a truck is and whether it is on schedule.
The point is not knowing where the truck is. It is finding out early when it will not make it.
Heard on a floor“No check call since last night.”
EDI
Electronic data interchange. Automated messaging between a customer's system and yours.
Tenders, status updates and invoices without anyone typing them.
Heard on a floor“They tender by EDI, it comes in automatically.”
FCFS
First come first served. No appointment; the driver joins a queue.
Unpredictable dwell, which is why detention is common at FCFS facilities.
Heard on a floor“It is FCFS, get there early.”
Load board
A marketplace where brokers post loads and carriers search for them.
Where cold coverage happens. Also where a lot of fraud starts.
Heard on a floor“I posted it to the board an hour ago.”
Owned carrier
A carrier who runs for you repeatedly and would take your call first.
The opposite of found capacity. Cheaper, more reliable, and much harder to defraud.
Heard on a floor“He is an owned carrier, he will do it.”
Prebook
Covering a load in advance rather than on the day it picks up.
Cheaper, calmer, and the first thing that disappears when a rep gets busy.
Heard on a floor“Anything prebooked for Thursday?”
This is one piece of Backhaul Academy
Freight Foundations, the first course in Backhaul Academy, covers how the industry actually works, for people who have never worked in it. The parties, the equipment, the weights, hours of service, the life of a load, fraud, and where the jobs are. Around ten hours, self paced, with a diagram for everything worth drawing.
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