Logistics & transport terms explained

EDI

EDI (Electronic Data Interchange) is the structured, computer-to-computer exchange of business documents — such as orders, invoices, and shipping notices — in a standardized electronic format.

Freight class (NMFC)

Freight class is the NMFC rating, from 50 to 500, that US LTL carriers use to price a shipment; a lower class means denser, easier-to-handle freight and a lower rate.

Operational TMS (OTMS)

An Operational TMS (OTMS) is a transportation management system that covers the full day-to-day execution of transport — planning, fleet, drivers, tracking, communication, and finance — not just freight procurement or visibility.

Bill of lading (BOL)

A bill of lading (BOL) is the document issued for freight a carrier picks up: a receipt for the goods, evidence of the contract of carriage and, in some forms, a document of title.

PRO number

A PRO number is the tracking and freight-bill number a carrier assigns to a shipment, mainly in LTL, printed as a barcode label on the bill of lading and on the freight itself.

Rate confirmation

A rate confirmation (rate con) is the load-specific agreement a broker or shipper sends a carrier, stating the rate, pickup and delivery details, accessorials and payment terms; it becomes binding once the carrier signs it.

Waybill

A waybill is a transport document issued by a carrier that lists the goods, the route, and the parties involved, accompanying a shipment as a record of carriage.

Intermodal transport

Intermodal transport moves goods in one standardized loading unit — a container, swap body, or trailer — across two or more modes such as road, rail, and sea, without ever handling the goods themselves.

Multimodal transport

Multimodal transport is the movement of goods using two or more modes of transport — such as road, rail, sea, and air — under a single contract with one operator responsible for the whole journey.

Vehicle Routing Problem (VRP)

The Vehicle Routing Problem (VRP) is the optimization problem of assigning a set of deliveries to a fleet of vehicles and sequencing the stops to minimize cost while respecting constraints like capacity and time windows.

BOC-3 (process agent designation)

Form BOC-3 ("Designation of Agents – Motor Carriers, Brokers and Freight Forwarders") is the FMCSA filing that names a process agent in each state, a person who can accept legal papers on the company’s behalf.

CSA scores (SMS)

CSA scores are the percentile rankings FMCSA’s Safety Measurement System (SMS) gives motor carriers from roadside inspection, crash and investigation data, used to decide which carriers to prioritize for interventions.

ELD (electronic logging device)

An ELD (electronic logging device) is a device connected to a truck’s engine that automatically records a driver’s driving time and duty status, replacing paper logs for most drivers who must keep hours-of-service records.

IFTA (International Fuel Tax Agreement)

IFTA (International Fuel Tax Agreement) is the agreement among the 48 contiguous US states and 10 Canadian provinces under which an interstate carrier licenses in one base jurisdiction and files one quarterly fuel-tax return that splits the tax by miles driven in each jurisdiction.

IRP (International Registration Plan)

The International Registration Plan (IRP) is a registration agreement under which an interstate truck registers once in its base jurisdiction, gets one apportioned plate and cab card, and pays registration fees split among the member jurisdictions by the distance it travels in each.

MC number vs USDOT number

A USDOT number identifies a company with FMCSA for safety oversight, while an MC number is the docket number for operating authority that for-hire interstate carriers, brokers and freight forwarders need; many carriers need both.

UCR (Unified Carrier Registration)

UCR (Unified Carrier Registration) is an annual registration and fee paid by interstate motor carriers, private carriers of property, brokers, freight forwarders and leasing companies, with the fee set by the number of commercial motor vehicles operated.

Cross-docking

Cross-docking is a logistics practice where incoming goods are unloaded, sorted and loaded directly onto outbound vehicles at a dock, with little or no storage in between.

Deadhead miles

Deadhead miles are the miles a truck drives without revenue freight, for example running empty to the next pickup or back home after a delivery.

Drayage

Drayage is the short-distance trucking of ocean or rail containers between a port or rail ramp and a nearby warehouse, distribution center or other terminal, usually as one leg of a longer intermodal move.

ETA

ETA (Estimated Time of Arrival) is the predicted time at which a vehicle or shipment will reach a given stop or destination.

Freight broker vs 3PL vs carrier

A carrier moves freight with its own trucks, a freight broker arranges transportation by a carrier for compensation without moving the freight itself, and a 3PL (third-party logistics provider) is a broader outsourcing partner that may broker, warehouse and manage transportation.

FTL vs LTL

FTL (full truckload) means a shipment fills or is charged for an entire vehicle, while LTL (less-than-truckload) means a shipment shares vehicle space with other consignments.

Groupage

Groupage is the practice of consolidating shipments from multiple customers into a single vehicle so each shipper pays only for the space they use.

Power only

Power only is a trucking service in which the carrier supplies only the tractor and driver (the "power unit") to pull a trailer owned or leased by the shipper, broker or 3PL.

Proof of Delivery (POD)

Proof of Delivery (POD) is the documented confirmation that goods were delivered to the recipient, typically captured as a signature, photo, or timestamped status at the delivery point.

Track & trace

Track & trace is the capability to follow a shipment's location and status in real time and to review its full movement history from pickup to delivery.

Accessorial charges

Accessorial charges are fees billed on top of the linehaul rate for extra services or conditions beyond a standard dock-to-dock move, such as detention, a liftgate, residential delivery or a truck canceled after dispatch.

Detention

Detention is the charge a carrier bills when its truck is held at a shipper or receiver beyond the agreed free time; the common norm is two hours free, then an hourly rate.

Freight factoring

Freight factoring is a financing arrangement in which a carrier sells its freight invoices to a factoring company for immediate cash, instead of waiting for the broker or shipper to pay on its terms.

Fuel surcharge

A fuel surcharge is an adjustable fee added to freight rates that rises and falls with fuel prices, protecting carriers from volatility without renegotiating every contract.

Lumper fee

A lumper fee is the charge for third-party labor ("lumpers") that loads or unloads a truck at a warehouse or distribution center, usually paid at the dock and billed back to the customer.

TONU (truck ordered not used)

TONU (truck ordered not used, also "truck order not used") is a fee paid to a carrier when a booked load is canceled after the truck has been committed or dispatched to it.