Logistics Glossary

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A

Absolute Capacity

Maximum freight volume or weight a vehicle can physically transport, regardless of legal restrictions. Safety and regulatory limits typically prevent reaching this theoretical maximum.

Accessorial Charges

Additional fees beyond the basic freight rate for extra services provided during transport. These can include detention, layover fees, fuel surcharges, or special equipment requirements.

Accessorial Matrix

Document outlining all potential additional service charges for freight movement. Serves as reference for both carrier and shipper expectations.

Account Penetration

Business strategy focused on expanding services provided to existing customers. More cost-effective than new customer acquisition in mature markets.

AI in Logistics

Application of artificial intelligence technologies in transportation and logistics operations. Includes machine learning for predictive analytics, natural language processing for communication automation, computer vision for freight inspection, and decision intelligence for optimal routing and capacity matching.

Air Ride

A suspension system in trucks that uses air-filled bags instead of conventional steel springs. This provides a smoother ride and better protection for sensitive cargo.

Algorithmic Freight Procurement

Use of mathematical models and algorithms to optimize carrier selection and rate negotiation. Replaces traditional RFP processes with continuous optimization based on current market conditions and carrier performance metrics.

Analytics-Driven Logistics

Transportation management approach using data science and predictive modeling to optimize routing, capacity, and pricing. Increasingly essential for competitive advantage.

ArcBest

Logistics company offering less-than-truckload, truckload, and supply chain services. Parent company of ABF Freight, one of North America's oldest LTL carriers.

Arrive Logistics

Rapidly growing freight brokerage known for technology investment and customer service focus. Popular employer for new entrants to the logistics industry.

Ascend TMS

A free cloud-based transportation management system (TMS) for freight brokers, shippers, and carriers. Offers load management, dispatch, driver communication, document management, and accounting features with a user-friendly interface. Popular among small to medium-sized logistics companies for its accessibility and comprehensive functionality.

Asset-Light Model

Business strategy where logistics companies minimize equipment ownership, instead leveraging partner carriers and contracted capacity. Reduces capital requirements but depends on strong carrier relationships.

Autonomous Vehicles in Logistics

Self-driving trucks and delivery vehicles that use AI, sensors, and advanced control systems to navigate without human intervention. Ranges from driver-assistance features to fully autonomous operation, with potential to address driver shortages and improve safety.

B

Backhaul

A return trip carrying cargo after completing a primary delivery. Helps maximize efficiency and revenue by avoiding empty miles on the return journey.

Beat Board

Internal broker tool tracking financial performance against targets. Motivates sales team and creates competitive atmosphere.

Bill of Lading (BOL)

A legal document that serves as a receipt of freight services and a contract between a freight carrier and shipper. The BOL contains all details about the shipment including origin, destination, quantity, and type of freight.

Blind Drop

A delivery where the driver is not informed of the final customer or receiver. Often used when protecting customer relationships or maintaining confidentiality.

Blind Shipment

Delivery where neither shipper nor receiver knows the identity of the other party. Requires special handling and documentation procedures.

Blockchain in Logistics

Distributed ledger technology providing transparent and tamper-proof documentation of supply chain events. Enhances trust and verification capabilities across logistics networks.

Blue Yonder

Leading supply chain management software platform formerly known as JDA. Widely used for transportation planning and optimization in enterprise environments.

BlueGrace Logistics

Technology-enabled 3PL providing freight brokerage and managed transportation services. Utilizes franchise business model alongside corporate operations.

Bobtail

A truck tractor driving without a trailer attached. Usually refers to when a driver is traveling to pick up a load or returning after a delivery.

Book of Business

Total value of freight accounts managed by a broker or logistics provider. Critical measure of company worth and market position, often used in valuation during acquisitions.

Boomerang Run

A transportation route where a driver delivers to a destination and immediately picks up another load at or near the delivery location for the return trip.

Bridge Formula

Mathematical calculation determining maximum allowable weight based on number of axles and their spacing. Important for weight compliance on highways.

Broker Bond

A $75,000 surety bond required by the FMCSA for freight brokers to operate legally. Protects carriers and shippers in case the broker fails to pay.

Broker of Choice

A strategic partnership program where brokers provide preferred carriers with consistent freight volume, quick payment terms, and other benefits in exchange for reliable capacity and priority service. Helps brokers secure dependable capacity while giving carriers predictable revenue streams.

Broker Packet

A collection of documents containing a broker's legal and insurance information, credit references, and carrier requirements. Used to establish business relationships with new carriers.

Brokerage Agreement

A legal contract between a freight broker and carrier defining the terms of their business relationship. Includes payment terms, insurance requirements, and service expectations.

Bulk Freight

Cargo that is transported unpackaged in large quantities. Usually refers to commodities like grain, coal, or liquids that are loaded directly into a trailer.

C

C.H. Robinson

Global third-party logistics provider and one of the world's largest freight brokers. Known for their vast carrier network and proprietary Navisphere technology platform.

C.R. England

Largest refrigerated truckload carrier in the United States. Family-owned company with significant dedicated contract carriage operations and logistics services.

Cabotage

Transport of goods between two points within the same country by a foreign carrier. Generally restricted by regulations in most countries.

Capacity Crunch

Market condition where freight demand exceeds available trucks. Results in higher rates and service challenges.

Capture Rate

Percentage of available freight volume in a market that a carrier or broker successfully secures. Key performance indicator for sales teams.

Cargo Insurance

Insurance coverage that protects against loss or damage to freight during transport. Required by law and typically has minimum coverage requirements.

Carrier Compliance Program

Formalized system for monitoring and enforcing carrier safety, insurance, and performance standards. Helps manage liability and maintain service quality.

Carrier Packet

Documentation provided by carriers including their operating authority, insurance certificates, and W-9 forms. Required by brokers before assigning loads.

Carrier Verification

The process of validating a carrier's credentials, insurance coverage, safety ratings, and operating authority before allowing them to haul freight. Modern verification systems use automation and real-time monitoring to continuously check carrier compliance and identify potential risks.

Cartage

Short-distance hauling of goods within a local area. Often used for final delivery from terminals to customers.

Chargeback

Fee assessed against carriers or vendors for failing to meet specified performance requirements. Common in retail logistics when delivery windows are missed.

Check Call

Regular communication between driver and dispatcher to confirm location and status of shipment. Usually required at pickup, delivery, and specific intervals during transit.

Chopper

Slang term for specific type of flatbed trailer with very low deck height. Used for tall loads that need to meet height restrictions.

Claim

A formal request for compensation due to loss, damage, or delay in shipment. Must be filed within specific timeframes and requires supporting documentation.

Cold Calling

Sales technique involving unsolicited contact with potential shipping customers. Traditional business development approach in freight brokerage.

Common Carrier

A transportation company that provides services to the general public at published rates. Subject to federal regulations and required to serve all customers without discrimination.

Consensus-Based Forecasting

Collaborative demand planning approach incorporating input from sales, operations, and carriers. Improves accuracy and alignment of transportation capacity planning.

Consignee

The party designated to receive the shipped freight at the destination. Responsible for accepting delivery and often unloading the shipment.

Continuous Move

Multiple loads scheduled in sequence to keep a truck moving with minimal deadhead or waiting time. Helps maximize efficiency and revenue for carriers.

Contract Carrier

A trucking company that provides transportation services under specific contracts with shippers. Different from common carriers who serve the general public.

Convoy

Digital freight network using technology to connect shippers with carriers. Focuses on eliminating empty miles through algorithmic matching and automated processes.

Cost Per Hundred Weight (CWT)

Pricing model based on weight measured in hundreds of pounds. Standard calculation method for many LTL shipments.

Coyote Logistics

Large freight brokerage known for their 'No Excuses' culture and proprietary technology. Acquired by UPS but maintains distinct operations and market position.

Cradle-to-Cradle

Supply chain practice focused on sustainable product lifecycles. Involves logistics planning for reuse and recycling of materials.

Cross-Dock

A practice where freight is unloaded from one trailer and immediately loaded onto another with minimal storage time. Used to consolidate shipments and optimize transportation.

Cube Out

When a trailer reaches its volume capacity before reaching weight limits. Common with lightweight but bulky freight.

Cubic Capacity

The total volume of space available inside a trailer for freight. Important for determining if a load will fit and for calculating shipping costs.

Customer Relationship Management (CRM)

Software and processes tracking customer interactions, shipment history, and preferences. Essential for maintaining shipper loyalty in competitive markets.

D

Danger Cargo

Alternative term for hazardous materials requiring special handling and documentation. Subject to strict regulatory requirements.

DAT Load Board

An online marketplace where brokers post available loads and carriers find freight to haul. One of the largest and most popular load boards in the industry.

DAT Solutions

Operator of North America's largest truckload freight marketplace connecting brokers, carriers, and shippers. Provides freight rate information, load board services, and market analytics.

DB Schenker

Logistics division of German rail operator Deutsche Bahn providing land, air, and ocean freight along with comprehensive supply chain management solutions.

Dead Freight

Business expense incurred when contracted space on vehicle goes unused. Represents financial liability when volume commitments aren't met.

Deadhead

When a truck travels without a paying load, typically while repositioning for the next pickup. Represents non-revenue generating miles that carriers try to minimize.

Deadlift

The manual lifting of freight without mechanical assistance. Can lead to additional charges in some delivery scenarios.

Dedicated Route

A regular shipping lane or circuit assigned to specific carriers or drivers. Often involves consistent pickup and delivery schedules for regular customers.

Demurrage

Charges for extended use of containers beyond allowed time. Different from detention which applies to trailers and drivers.

Detention

Charges applied when a truck is held at a facility beyond the standard free time for loading or unloading. Usually calculated hourly after a grace period.

DHL Supply Chain

Contract logistics provider offering warehousing, distribution, and transportation management services. Part of Deutsche Post DHL Group's logistics division.

Digital Freight Broker

A technology-focused freight brokerage that leverages digital platforms, automation, and data analytics to connect shippers and carriers. Unlike traditional brokers, digital freight brokers typically operate with lower overhead costs, automated processes, and API-based integrations to streamline freight matching and management.

Digital Freight Matching

Technology connecting shippers and carriers through algorithms and real-time data. Modern alternative to traditional load boards, reducing empty miles and transaction costs.

Digital Freight Matching

Technology-driven approach that automatically connects shippers with available carriers based on parameters like equipment type, location, and pricing. Leverages algorithms to replace traditional manual load booking processes and reduce empty miles.

Digital Twin

Virtual representation of physical logistics network allowing simulation and optimization. Advanced planning approach for complex transportation systems.

Dispatch

The process of coordinating and directing truck movements and load assignments. Includes communication with drivers, scheduling, and problem-solving.

Double Brokering

The illegal practice of a broker re-brokering a load to another broker without disclosure or authorization. Violates federal regulations and broker-carrier agreements.

Drayage

Short-distance transport of freight, typically to and from ports or rail yards. Often involves container movements and intermodal operations.

Driver Qualification File

A collection of required documents maintaining driver records including licenses, medical certificates, and driving history. Required by DOT regulations.

Driver Shortage

Persistent industry challenge characterized by insufficient qualified commercial drivers to meet freight demand. Affects capacity and rates.

Drop Trailer

When a trailer is left at a facility for loading or unloading without the truck and driver waiting. Allows for more flexible loading schedules and efficient equipment use.

Dropped Trailer Pool

Collection of trailers left at customer location for loading or unloading at their convenience. Improves facility throughput and driver utilization.

Dry Run

A scheduled pickup that fails because the freight isn't ready or the shipper cancels. May result in TONU (Truck Ordered Not Used) charges.

Dry Van

A standard enclosed trailer used for non-temperature controlled freight. Most common trailer type for general cargo transport.

DSV Panalpina

Global transport and logistics company formed through merger. Offers freight forwarding, contract logistics, and supply chain management across multiple modes.

Dunnage

Materials used to protect and secure cargo during transport. Includes pallets, straps, airbags, and other load securement devices.

Dynamic Pricing

Pricing strategy in freight transportation where rates fluctuate based on real-time market conditions, capacity availability, demand patterns, and other factors. Enables brokers and carriers to optimize revenue by adjusting prices according to current market conditions rather than using fixed rate tables.

Dynamic Pricing

Pricing strategy in freight transportation where rates fluctuate based on real-time market conditions, capacity availability, demand patterns, and other factors. Enables brokers and carriers to optimize revenue by adjusting prices according to current market conditions rather than using fixed rate tables.

E

EBITDA

Earnings Before Interest, Taxes, Depreciation and Amortization - key financial performance metric for logistics companies. Important for company valuation and acquisition potential.

Echo Global Logistics

Technology-enabled transportation management provider offering multimodal solutions. Balances technology platform with human expertise for service delivery.

Economies of Scale

Cost advantages obtained through larger volume operations in transportation. Primary benefit of freight consolidation and network optimization.

Edge Case Logistics

Specialized handling of uncommon or challenging shipments that fall outside standard operating procedures. Often commands premium pricing due to complexity.

EDI

Electronic Data Interchange - standardized electronic communication between business partners. Used for load tenders, status updates, and invoicing.

Elastic Logistics

Supply chain strategy that can quickly expand or contract based on market demand. Requires flexible carrier partnerships and capacity planning.

ELD

Electronic Logging Device that automatically records driver hours of service. Mandatory for most commercial trucks to comply with federal regulations.

Embargo

Temporary suspension of freight acceptance to specific locations or for certain commodities. May be imposed due to severe weather, labor issues, or capacity constraints.

Enterprise Resource Planning (ERP) Integration

Connection between transportation management systems and broader business software. Essential for seamless order-to-delivery processes.

Entry Port

Designated location where imported goods officially enter a country. Subject to customs clearance and often additional fees.

Estes Express Lines

Largest privately owned LTL carrier in North America. Family-owned company known for financial stability and comprehensive North American service coverage.

Expected Time of Arrival (ETA)

Estimated date and time when shipment will reach its destination. Critical information for receiver planning and resource allocation.

Expedited Freight

Time-critical shipments that require faster than normal delivery times. Usually commands higher rates and requires dedicated service.

Expert Rating

Professional assessment of freight classification and documentation accuracy. Helps prevent costly billing adjustments and compliance issues.

F

Factor

A financial company that purchases freight bills from carriers at a discount. Provides immediate payment to carriers instead of waiting for broker payment terms.

FedEx Freight

Less-than-truckload carrier division of FedEx Corporation. Offers priority and economy services throughout North America with extensive terminal network.

First Mile

Initial transportation segment from shipper's facility to first transportation hub. Critical for on-time delivery performance.

Fixed vs. Variable Costs

Transportation expense categorization differentiating between costs that remain constant (equipment, insurance) and those that fluctuate with volume (fuel, labor). Fundamental for carrier pricing strategies.

Flatbed

An open trailer with no sides or roof, used for oversized or irregularly shaped cargo. Requires special securement and often tarping.

Flexport

Digital-first freight forwarder and customs broker combining technology with logistics expertise. Specializes in global trade and supply chain visibility.

FMCSA

Federal Motor Carrier Safety Administration - government agency responsible for regulating the trucking industry. Enforces safety regulations and issues operating authorities.

Force Majeure

Contract clause excusing performance due to extraordinary events like natural disasters. Protects carriers from liability during extreme circumstances.

Foreigh

A logistics technology platform that helps freight brokers and shippers move more freight efficiently. Known for their AI-powered Carrier Sales Rep tool that automates carrier outreach, negotiation, and relationship management to increase broker productivity and capacity.

Forward Air

Asset-light provider of less-than-truckload and truckload services focusing on expedited ground transportation. Serves the air freight and final mile markets.

FourKites

Real-time supply chain visibility platform using predictive analytics to improve logistics operations. Focuses on end-to-end tracking across all transportation modes.

Free On Board (FOB)

Shipping term indicating when liability and ownership transfers from seller to buyer. Determines responsibility for freight charges and risk during transit.

Free Time

Allowed period for loading or unloading before detention charges begin. Typically ranges from one to two hours depending on freight type.

Freight Agent

An independent contractor who books and manages freight shipments under another broker's authority. Agents typically work from remote locations, use the broker's operating authority and insurance, and earn a percentage of the profit margin on loads they handle while building their own customer and carrier relationships.

Freight All Kinds (FAK)

A classification for mixed shipments of various commodities. Allows for simplified rating and billing of diverse cargo types.

Freight Arbitrage

Business practice of profiting from price discrepancies between markets. Common strategy for brokers leveraging market inefficiencies.

Freight Broker

A transportation intermediary that connects shippers who need to transport goods with authorized motor carriers who can provide the transportation service. Brokers negotiate rates, arrange pickup and delivery, handle documentation, and facilitate communication between parties without taking possession of the freight or operating transportation equipment.

Freight Broker Training

Educational programs designed to prepare individuals for careers in freight brokerage. Covers industry regulations, carrier selection, pricing strategies, customer acquisition, transportation management systems, and operational procedures. Available through industry associations, private training companies, community colleges, and online platforms.

Freight Claim

A formal request for compensation due to damaged or lost cargo during transport. Requires documentation and follows specific filing procedures.

Freight Forwarder

An intermediary that arranges and organizes shipments for companies to get goods from manufacturer or producer to market, customer, or final point of distribution. Unlike brokers, freight forwarders typically take possession of freight, consolidate shipments, and often specialize in international transportation requiring customs expertise.

Freight Recession

Economic downturn specifically affecting transportation industry. Often precedes broader economic contractions due to shipping's leading indicator status.

Freight Tender

Formal offer of cargo for transportation. Includes shipment details and service requirements for carrier consideration.

FreightWaves

Media and market intelligence company providing freight market data, analysis, and forecasting. Publisher of freight industry news and host of industry conferences.

Fuel Surcharge

An additional fee that fluctuates with fuel prices to offset carrier fuel costs. Usually calculated as a percentage of the base rate.

G

G-Wagon

Mercedes-Benz G-Class luxury SUV, often seen as a status symbol of successful freight brokers and logistics entrepreneurs. Informally represents achievement in the industry.

Gain Sharing

Business arrangement where logistics cost savings are distributed between service provider and client. Creates financial incentive for continuous improvement.

Gate Fee

Charges assessed for entering ports, terminals, or other facilities. Usually passed through to the customer as an accessorial charge.

Gateway

Transportation hub where freight transitions between carriers or modes. Often located at state borders or major intermodal facilities.

Geo-fencing

Technology creating virtual boundaries around specific locations. Used for automated notifications when trucks enter or exit designated areas.

GlobalTranz

Technology-enabled third-party logistics provider offering multimodal services through proprietary technology platform and agent network.

Gotcha Freight

Cargo that appears straightforward but has hidden challenges like difficult access, special handling needs, or oversized dimensions not disclosed initially.

Gray Pool

Shared trailer pool that multiple carriers can access. Improves equipment utilization and reduces empty repositioning.

Green Logistics

Transportation strategies focused on environmental sustainability. Includes emissions reduction, alternative fuels, and efficiency improvements.

Gross Margin

Revenue minus cost of purchased transportation. Primary profitability metric for brokers and non-asset logistics providers.

Gross Vehicle Weight Rating (GVWR)

The maximum operating weight of a vehicle including cargo, fuel, and driver. Set by manufacturers and regulated by law.

Growth Strategy

Formal business plan for expanding transportation service volume or market reach. May include geographic expansion, service diversification, or acquisition approaches.

H

Harbor Fee

Charge assessed for port services when transporting freight through maritime facilities. Typically passed through to shippers as accessorial charge.

Hazmat

Hazardous materials requiring special handling, documentation, and driver certification. Subject to strict regulations and additional insurance requirements.

Headhaul

Primary direction of freight movement, typically from production centers to consumption areas. Generally commands higher rates than backhaul.

High-Value Shipping

Transportation of exceptionally valuable cargo requiring additional security and insurance. Commands premium rates and specialized handling protocols.

Holistic Transportation Management

Comprehensive approach considering all aspects of freight movement including cost, service, sustainability, and risk. Moves beyond siloed decision-making.

Hook and Drop

Operation where driver drops loaded trailer and immediately hooks to another trailer. Minimizes driver wait time at facilities.

Hot Load

Urgent shipment requiring immediate pickup and expedited delivery. Takes priority over standard freight and often commands premium rates.

Hours of Service (HOS)

Federal regulations limiting the number of hours a driver can operate. Includes rules for driving time, on-duty time, and required rest periods.

Hub Group

Asset-light transportation management company specializing in intermodal marketing, dedicated trucking, and logistics services. Industry leader in intermodal operations.

Hybrid Distribution Model

Transportation strategy combining multiple delivery methods to optimize cost and service. May include direct shipping, hub and spoke, and pool distribution.

I

J

K

L

Landbridge

Overland transport connecting water routes. Often refers to rail service connecting ports on different coasts to avoid longer sea routes.

Landstar

Asset-light logistics provider operating through a network of independent agents and owner-operators. Known for specialized and heavy-haul transportation services.

Lane

A regular route between two points or regions. Often refers to specific shipping corridors with established rates and capacity.

Last Mile

Final delivery segment from distribution center to end customer. Often the most expensive and complex part of shipping process.

Layover

When a driver must wait between loads or deliveries, usually overnight. May incur additional charges if caused by shipper or receiver delays.

Lean Transportation

Business methodology focused on eliminating waste from freight processes. Adapts manufacturing efficiency principles to logistics operations.

Legal Weight

Maximum cargo weight permitted by law on specific roads. Varies by jurisdiction and vehicle configuration.

Less Than Truckload (LTL)

Shipments that don't require a full trailer. Multiple shipments from different customers are combined to fill a truck.

Liability Insurance

Coverage protecting against damage or injury caused by the truck or driver. Required by law with minimum coverage amounts.

Lifetime Value (LTV)

Total revenue expected from shipper throughout relationship duration. Guides customer acquisition cost decisions and account retention investments.

Line Haul

Long-distance portion of freight movement between major cities or terminals. Typically excludes pickup and delivery operations.

Lineage Logistics

World's largest temperature-controlled industrial REIT and logistics solutions provider. Specializes in cold storage and food supply chain optimization.

Live Load/Unload

When driver remains with the trailer during loading or unloading. Contrasts with drop trailer operations.

Load Board

Online marketplace where brokers post available loads and carriers find freight. Essential tool for matching capacity with demand.

Load Lock

Device used to secure cargo and prevent shifting during transport. Required for proper load securement.

Load Plan

Detailed instructions for loading sequence and position of freight on trailer. Ensures proper weight distribution and cargo protection.

Load-to-Truck Ratio

Measure of available loads compared to available trucks in a market. Indicates market conditions and helps in rate negotiations.

Logbook

Record of driver's duty status including driving time, rest periods, and other activities. Required by DOT regulations.

Logistics Service Level Agreement (SLA)

Contractual commitment defining specific performance standards for transportation services. Often includes financial penalties for non-compliance.

Lumper

Third-party service provider who loads or unloads freight. Fee is usually paid by carrier and reimbursed as accessorial charge.

M

M&A Integration

Process of combining acquired transportation companies into existing operations. Critical success factor in logistics industry consolidation.

Machine Learning in Transportation

Subset of AI that enables systems to learn from historical transportation data and improve performance without explicit programming. Applications include lane pricing optimization, detention time prediction, and identifying fraud patterns in carrier onboarding.

Maersk

Danish integrated shipping company offering ocean and inland freight transportation. Expanding into end-to-end supply chain services beyond traditional shipping.

Manifest

Document listing all cargo on a truck including weights, pieces, and destinations. Required for customs and regulatory compliance.

Map Rate

Freight price based on standard mileage between origin and destination. Alternative to negotiated or spot rates.

Margin Compression

Industry phenomenon where rising costs cannot be fully passed to customers, reducing profitability. Common challenge during inflationary periods or intense competition.

Market Share Strategy

Business approach focused on capturing greater percentage of freight in specific lanes or regions. May involve short-term margin sacrifice for long-term volume growth.

Master Bill of Lading

Consolidated shipping document covering multiple shipments. Used when several shipments are grouped for transport efficiency.

MC Authority

Motor Carrier Authority is a license issued by the Federal Motor Carrier Safety Administration (FMCSA) that allows companies to transport regulated commodities for hire across state lines. Also known as operating authority, it's required for all for-hire carriers, brokers, and freight forwarders engaging in interstate commerce.

MC Number

Motor Carrier number issued by FMCSA authorizing interstate operations. Required for both carriers and brokers.

McLeod Software

Transportation management software provider serving trucking companies, brokers, and 3PLs. Known for their LoadMaster and PowerBroker products.

MercuryGate

Transportation management system (TMS) provider serving shippers, 3PLs, freight forwarders and brokers. Known for multi-modal capabilities and flexible deployment options.

Mileage Rate

Freight charges calculated per mile traveled. Common pricing method for full truckload shipments.

Milk Run

Routing strategy with multiple pickup or delivery points along a circular route. Named after traditional dairy delivery methods.

Mode Transportation

Multi-modal third-party logistics provider offering truckload, less-than-truckload, intermodal, air, and ocean services through agent-based model.

N

Nearshoring

The practice of transferring business operations to nearby countries rather than distant ones. In logistics, this involves relocating manufacturing or distribution facilities closer to end markets to reduce transportation costs, minimize supply chain disruptions, and improve delivery times while maintaining some cost advantages over domestic production.

Negotiated Rate

Freight price agreed upon between shipper and carrier that differs from published tariffs. Usually reflects volume commitments or special service requirements.

Nested Freight

Cargo arranged to maximize space utilization by fitting smaller items inside larger ones. Improves loading efficiency and reduces shipping costs.

Net Operating Ratio

Operating expenses as percentage of revenue. Primary efficiency metric for asset-based carriers, with lower percentages indicating higher profitability.

Network Effect

Business concept where logistics platform value increases exponentially with more participants. Fundamental principle behind digital freight marketplaces.

New Business Development

Dedicated function focused on acquiring new shipping customers. Typically involves longer sales cycles for major logistics accounts.

NFI Industries

Privately held integrated supply chain solutions provider offering dedicated transportation, warehousing, intermodal, and global logistics services.

NMFC

National Motor Freight Classification - standardized freight categories used for LTL rating. Based on density, handling, value, and liability.

Nolan Transportation Group (NTG)

Rapidly growing freight brokerage offering truckload, less-than-truckload, drayage, and expedited shipping services. Known for aggressive expansion strategy.

Non-Asset Based

Logistics provider that arranges transportation without owning vehicles or equipment. Includes brokers and many 3PLs.

O

Odyssey Logistics

Specialized logistics provider focusing on complex chemical and process industry transportation. Offers managed services and proprietary technology solutions.

Old Dominion Freight Line

Premium less-than-truckload (LTL) carrier known for service quality and low claims ratio. Consistently ranked among top performers in the LTL sector.

Onboard

Status indicating freight has been loaded onto transportation vehicle. Important milestone for shipment tracking and visibility.

Operating Authority

Legal permission from FMCSA to operate as a motor carrier or broker. Must be active and in good standing.

Operational Excellence

Business philosophy focusing on continuous process improvement and efficiency. Increasingly important as margin pressure increases in competitive markets.

Optimization

Process of maximizing efficiency in transportation planning. Includes route planning, load consolidation, and capacity utilization.

Order Visibility

Real-time access to shipment status information across supply chain. Increasingly expected capability from modern logistics providers.

Out of Gauge

Oversized cargo exceeding standard transportation dimensions. Requires special permits and often escort vehicles.

Out of Route Miles

Additional distance traveled beyond the most direct route. May be necessary for road restrictions or multiple stops.

Outsourced Logistics

Strategic business decision to contract transportation functions to specialized providers. Allows companies to focus on core competencies while leveraging external expertise.

Owner Operator

Driver who owns and operates their own truck. May work directly with brokers or lease to larger carriers.

P

Pallet

Standard platform used for unitized handling of freight. Enables efficient loading and unloading with forklifts.

Pallet Jack

Manual device for moving palletized freight. Often required for deliveries without dock access.

Payload

Actual weight of cargo being transported, excluding the weight of the vehicle, fuel, and driver. Key factor in profitability calculations.

Payment Terms

Agreed timeframe for broker payment to carrier after delivery. Typically ranges from Quick Pay to 30 days.

Peak Season

Period of highest demand for freight transportation. Usually results in higher rates and tighter capacity.

Peddle Run

Route with multiple delivery stops in a local area. Requires efficient routing to maximize delivery productivity.

Penske Logistics

Global supply chain and logistics company offering dedicated contract carriage, distribution center management, and transportation management. Subsidiary of Penske Corporation.

Per Diem

Daily rate charged for trailer detention or driver expenses. May be part of accessorial charges.

Permit

Special authorization required for oversize/overweight loads or restricted routes. Must be obtained before transport.

Pickup Number

Reference number assigned to identify a specific pickup. Used for tracking and communication.

Pipeline Inventory

Goods in transit between locations within supply chain. Represents significant capital investment affected by transportation speed and reliability.

Placard

Warning sign displayed on vehicles carrying hazardous materials. Required by law and must match specific hazard classes.

POD

Proof of Delivery - signed document confirming successful delivery. Required for payment processing.

Pool Distribution

Logistics method where shipments are consolidated at strategic locations before local delivery. Improves efficiency for multiple deliveries in same area.

Power Only

Service where carrier provides just the truck tractor. Customer or broker provides the trailer.

Pre-Plan

Advance scheduling of loads to optimize truck utilization. Helps reduce empty miles and improve efficiency.

Predictive Analytics

Use of historical data, statistical algorithms, and machine learning techniques to identify the likelihood of future outcomes in freight markets. Helps logistics professionals anticipate capacity constraints, pricing trends, and potential service disruptions.

Private Equity in Logistics

Investment category characterized by significant capital deployment in transportation and supply chain companies. Major force driving industry consolidation and technology adoption.

Private Fleet Conversion

Business strategy helping companies transition from operating their own trucks to using for-hire carriers. Often provided as consultative service by 3PLs.

Pro Number

Progressive number assigned to track individual shipments. Used primarily in LTL operations.

Profit Center

Business unit evaluated on its financial performance rather than just cost control. Modern approach to logistics departments traditionally viewed as cost centers.

project44

Supply chain visibility platform providing real-time transportation tracking and predictive insights. Connects carriers, shippers and 3PLs through API technology.

Q

R

R+L Carriers

Family-owned LTL carrier operating throughout North America. Known for extensive service coverage and proprietary Family of Companies business model.

Rail Ramp

Facility where containers or trailers transfer between rail and truck transportation. Key component of intermodal shipping networks.

Rate Confirmation

Document detailing agreed price and terms for a specific load. Serves as contract between broker and carrier.

Rate Per Mile

Transportation cost calculated on a per-mile basis. Standard pricing method in truckload shipping.

Real-time Transportation Visibility

Technology that provides continuous tracking and monitoring of freight movements across the supply chain. Uses IoT devices, mobile applications, and AI to deliver accurate location data and predictive ETAs to all stakeholders.

Redwood Logistics

Technology-focused logistics platform providing managed transportation, freight brokerage, and supply chain solutions. Known for their LeanLogistics heritage.

Reefer

Refrigerated trailer used for temperature-controlled freight. Requires special equipment and monitoring.

Relay

Transfer of freight between drivers to comply with hours of service regulations. Enables continuous movement of time-sensitive loads.

Remit

Payment address where carriers send freight bills. Important for proper processing of invoices.

Residential Delivery

Delivery to a home address rather than commercial location. Often requires special equipment or handling.

Return on Investment (ROI)

Financial metric measuring profitability of transportation investments like equipment purchases or technology implementations. Essential for capital expenditure decisions.

Revenue Management

Systematic approach to maximizing financial returns from available transportation capacity. Involves strategic pricing, customer selection, and resource allocation.

Revenue Per Mile

Financial metric measuring income generated per mile traveled. Critical performance indicator for carrier profitability.

Reverse Logistics

Process of moving goods from customers back to vendors or manufacturers. Includes returns, recycling, and disposal transportation.

Routing Guide

Instructions specifying preferred carriers and procedures for shipping. Used by shippers to standardize transportation.

Running Empty

Driving without a load, also called deadheading. Represents non-revenue miles for carriers.

Rush Premium

Additional charge for expedited transportation service with shortened delivery timeframe. Significant revenue opportunity during tight deadlines.

RXO

Asset-light truck brokerage spun off from XPO Logistics. Leverages proprietary technology platform for freight matching and carrier management.

Ryder System

Transportation and supply chain company offering leasing, dedicated transportation, and supply chain management. Known for their extensive fleet management capabilities.

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Safety Rating

FMCSA evaluation of carrier safety performance. Affects ability to obtain loads and insurance.

Saia

Less-than-truckload carrier providing regional and national service. Known for consistent terminal network expansion and technology investment.

Scale Ticket

Document showing vehicle weight from certified scale. Required for weight compliance verification.

SCAM Score

A risk assessment metric that uses AI and machine learning to evaluate carrier legitimacy and reliability. Analyzes patterns in authority history, insurance claims, safety records, and operational data to generate a numerical score predicting the likelihood of fraudulent or problematic behavior.

Scenario Planning

Strategic preparation for multiple possible future states in logistics markets. Helps businesses remain agile during rapid industry changes.

Schneider National

Major transportation and logistics services provider with extensive truckload, intermodal and logistics operations. Recognized for their distinctive orange equipment.

Seal

Security device applied to trailer doors to prevent tampering. Required for many types of shipments.

Seasonal Rates

Freight prices that vary based on time of year. Reflects changes in demand and capacity.

Service Recovery

Strategies and procedures used to address service failures in freight transportation, such as late deliveries, damaged cargo, or communication breakdowns. Effective recovery involves quick response, clear communication, fair resolution, and process improvements to prevent future issues.

Shag Truck

Yard truck used for moving trailers within terminals or distribution centers. Not typically used for over-the-road transport.

Shipper

Party who originates the freight shipment. Responsible for proper packaging and documentation.

Shipper of Choice

Designation for companies that create driver-friendly environments and efficient operations. Increasingly important during capacity constraints to secure reliable transportation.

Slip Seat Operation

Trucking practice where multiple drivers use the same vehicle on different shifts. Maximizes equipment utilization by keeping trucks moving 24/7.

Specialized Equipment

Non-standard transportation assets designed for specific freight types or requirements. Includes flatbeds, step decks, refrigerated trailers, tankers, lowboys, double drops, RGNs (removable gooseneck trailers), and other equipment configurations that handle oversized, temperature-sensitive, or uniquely shaped cargo.

Split Delivery

Single shipment divided for delivery to multiple locations. May incur additional charges for extra stops.

Spot Market

Freight moved at current market rates rather than contract prices. More volatile than contracted rates.

Stackable

Freight that can have other items placed on top. Important for efficient trailer utilization.

Step Deck

Trailer with two deck heights for tall cargo. Alternative to standard flatbed for oversize loads.

Stop-Off

Additional pickup or delivery location on a trip. Usually incurs extra charges.

Straight Truck

Single unit truck with cargo area attached to cab. Used for smaller loads and local delivery.

Straps

Load securement devices required for flatbed cargo. Must meet DOT strength requirements.

Strategic Capacity Programs

Formal carrier arrangements securing dedicated equipment and predictable pricing. Balances transportation cost control with service reliability.

Surge Capacity

Additional transportation resources available for peak demand. May include backup carriers or equipment.

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Tandem

Set of two axles close together on truck or trailer. Important for weight distribution.

Tank Trailer

Specialized equipment for liquid bulk cargo. Requires specific certifications and cleaning.

Tarp

Protective covering for open deck loads. Required for weather protection and load security.

Team Drivers

Two drivers alternating driving duties in same truck. Enables continuous operation for expedited freight.

Tender

Formal offer of freight to a carrier for transport. Includes shipment details, requirements, and often the proposed rate.

Tender Acceptance Rate

Percentage of freight offers accepted by carriers. Key business metric indicating market positioning and carrier relationship strength.

Terminal

Facility for freight consolidation and transfer. Used primarily in LTL operations.

Third Party Logistics (3PL)

Company providing outsourced logistics services. Often combines brokerage with other services.

Thought Leadership

Content marketing strategy establishing expertise in specialized transportation niches. Generates leads and builds credibility in competitive logistics markets.

Time Critical

Freight requiring delivery by specific deadline. Usually commands premium rates.

Time-Definite Delivery

Transportation service guaranteeing arrival by specific time or date. Usually premium service with higher rates than standard delivery.

TONU

Truck Ordered Not Used - fee charged when scheduled pickup is cancelled. Compensates carrier for lost opportunity.

Total Cost of Ownership (TCO)

Comprehensive assessment of all expenses associated with transportation assets throughout their lifecycle. Includes purchase, maintenance, fuel, insurance, and disposal costs.

TQL (Total Quality Logistics)

One of the largest freight brokerage firms in North America. Known for aggressive growth strategy and extensive training program for brokers.

Tracking

System for monitoring shipment location and status. May use GPS, EDI, or manual check calls.

Tractor

Power unit that pulls trailers. Also called truck or power unit.

Traffic Lane

Regular route between specific origins and destinations. Often develops consistent pricing patterns.

Trailer

Cargo-carrying unit pulled by tractor. Various types for different freight needs.

Transfix

Technology-focused digital freight marketplace using data science to optimize shipping. Emphasizes carrier experience and reduction of empty miles.

Transit Exception

Unexpected delay or issue during transportation. Requires notification to stakeholders and often adjustment of delivery expectations.

Transit Time

Time required to move freight from origin to destination. Important for delivery scheduling.

Transportation Management System (TMS)

Software for managing freight operations. Handles load planning, tracking, and documentation.

Trimble Transportation

Technology provider offering fleet management, routing, and transportation management software. Popular products include TMW, PeopleNet, and 10-4 Systems.

Truck Order

Request for carrier to provide equipment for load. Specifies equipment type and timing requirements.

Trucking Authority

Legal permission to operate as motor carrier. Required for interstate commerce.

Truckload (TL)

Shipment requiring entire trailer capacity. Typically more cost-effective than LTL for large shipments.

Truckstop.com

Digital freight marketplace providing load board services, freight rate analysis, and carrier compliance tools. Alternative to DAT with strong carrier-side user base.

Two-Way Loading

Ability to load/unload trailer from both sides. Feature of some specialized trailers.

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V

Valuation Multiples

Financial metrics used to determine logistics company worth, typically expressed as multipliers of EBITDA or revenue. Vary significantly based on business model and technology component.

Value Proposition

The unique combination of benefits and solutions a logistics provider offers to customers that differentiates them from competitors. In freight brokerage, this typically includes service quality, technology capabilities, specialized expertise, pricing advantages, or network strength that creates measurable value for shippers or carriers.

Van

Enclosed trailer for general freight. Most common type of trailer.

Vehicle Inspection

Required safety check of truck and trailer. Must be performed daily and documented.

Vendor Compliance

Adherence to shipper's specific requirements for packaging, labeling, and delivery. Non-compliance may result in penalties or chargebacks.

Vented Van

Trailer with ventilation openings for transporting products that require airflow. Common for agricultural products.

Venture Capital in Logistics

Funding source for early-stage transportation technology companies. Driving force behind freight innovation and digital transformation.

Vertical Integration

Business strategy where companies expand into different supply chain functions. Examples include brokers acquiring carriers or warehouses to offer end-to-end solutions.

Vicarious Liability

Legal doctrine where a broker can be held responsible for the negligent actions of a carrier they hired, even without direct fault. Emphasizes the importance of proper carrier vetting and monitoring as brokers may face liability for accidents or damages caused by their contracted carriers.

Victory Gong

A celebratory ritual in freight brokerages where a gong is struck to mark successful deals or milestones. Creates positive energy and team motivation.

Visible Supply Chain Management

E-commerce focused fulfillment and logistics provider specializing in shipping optimization and parcel consolidation. Tailored for direct-to-consumer brands.

Volume Quote

Special freight rate offered for shipments that take up significant capacity but are relatively light. Based on space rather than weight.

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Waiting Time

Period spent waiting for loading or unloading. May incur detention charges.

Wallet Share

Percentage of a customer's total logistics spend captured by a specific provider. Important metric for account management teams.

Waybill

Document containing shipping instructions and cargo details. Serves as record of transportation agreement.

Weather Delay

Transportation postponement due to adverse weather conditions. Common force majeure event in freight contracts.

Weight Limit

Maximum legal weight for vehicle on roads. Varies by state and road type.

Weight Ticket

Document showing certified vehicle weight. Required for weight compliance.

Weighted Average

Calculation method for determining typical freight rates across multiple shipments. Accounts for differences in shipment size and distance.

Werner Enterprises

Large diversified transportation company with significant truckload operations. Known for strong driver training programs and early technology adoption.

White Glove Service

Premium logistics offering providing exceptional care for high-value or sensitive items. Includes special handling procedures and often inside delivery with installation.

Workflow Automation

Technology replacing manual transportation management processes with programmed sequences. Increases efficiency and reduces human error in logistics operations.

Worldwide Express

Logistics provider specializing in small package shipping and LTL freight for small and medium-sized businesses. Operates through franchise ownership model.

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