Definitions
Trucking & TMS Glossary
Plain-English definitions of the trucking, freight, and transportation management terms you encounter every day. Use this glossary as a quick reference whether you are evaluating TMS software, onboarding a new dispatcher, or learning the industry.
B
- Backhaul
- A return load that a carrier picks up after delivering its primary outbound freight, used to avoid driving back empty. Securing backhauls is a major focus of dispatch and lane planning.
- BOL (Bill of Lading)
- A legal document issued by a carrier that details the type, quantity, and destination of goods being shipped. The BOL serves as a receipt, contract of carriage, and document of title.
C
- Carrier
- A company that operates trucks and physically moves freight from origin to destination. Asset-based carriers own their equipment; non-asset carriers operate as brokers or freight forwarders.
- CSA Score
- Compliance, Safety, Accountability scores assigned by the FMCSA based on a carrier's roadside inspection results, crash data, and violations. CSA scores influence insurance rates and shipper willingness to do business.
D
- Deadhead
- Miles driven by a truck without a paying load, typically when repositioning between deliveries and the next pickup. Reducing deadhead is one of the biggest levers for carrier profitability.
- Dispatch
- The process of assigning loads to drivers and trucks, planning routes, and managing pickups and deliveries. The dispatcher is the operational hub of a trucking company, balancing customer commitments, driver hours, and equipment availability.
- DOT (Department of Transportation)
- The US federal agency responsible for transportation policy, including the regulation of commercial motor carriers. Every interstate carrier must have a DOT number.
- Drayage
- Short-distance trucking moves, typically between a port, rail terminal, or intermodal yard and a nearby warehouse or distribution center. Drayage is a specialized segment with its own equipment and pricing.
- Driver Settlement
- The calculation and payment of what a driver earns for completed loads. Settlements can be based on per-mile rates, percentage of revenue, flat per-load rates, or any combination, plus accessorials, deductions, and reimbursements.
- DVIR (Driver Vehicle Inspection Report)
- A report drivers must complete before and after each trip documenting the condition of the vehicle. DVIRs are required by federal law and identify defects that could affect safety.
E
- ELD (Electronic Logging Device)
- A federally mandated device installed in commercial trucks that records driving hours, vehicle location, and engine data automatically. ELDs replace paper logbooks and are required for most US carriers under the FMCSA ELD mandate.
F
- Factoring
- Selling unpaid freight invoices to a third-party factoring company at a discount in exchange for immediate cash. Factoring helps carriers maintain cash flow when shippers and brokers pay on 30-, 60-, or 90-day terms.
- FMCSA (Federal Motor Carrier Safety Administration)
- The DOT agency that regulates commercial trucking safety, including HOS rules, ELD requirements, drug and alcohol testing, and carrier safety ratings.
- Freight Broker
- A licensed intermediary who arranges transportation between shippers and carriers without owning trucks. Brokers earn a margin on the difference between what the shipper pays and what the carrier is paid.
- FTL (Full Truckload)
- Freight shipments that fill an entire trailer, typically moving point-to-point without intermediate stops. FTL is the dominant mode for cross-border and long-haul trucking.
- Fuel Card
- A specialized payment card used by trucking companies to buy fuel at discounted rates and track fuel purchases by driver, truck, and location. Fuel card data feeds directly into IFTA reporting in modern TMS platforms.
H
- HOS (Hours of Service)
- Federal regulations from the FMCSA that limit how many hours a commercial driver can drive and work. The standard rule allows 11 hours of driving within a 14-hour on-duty window after 10 consecutive hours off duty.
I
- IFTA (International Fuel Tax Agreement)
- A US-Canada agreement that lets motor carriers operating in multiple jurisdictions file a single quarterly fuel tax return through their base state or province. IFTA returns are due 30 days after each quarter end.
- Intermodal
- Freight that moves on more than one mode of transportation, typically combining truck and rail. Intermodal containers are designed to transfer between trucks, trains, and ships without unloading the cargo.
L
- Lane
- A regular origin-destination pair that a carrier runs frequently, such as Laredo to Dallas. Carriers analyze lanes for profitability and try to build dedicated lane networks to reduce deadhead.
- Load Board
- An online marketplace where shippers and brokers post available freight and carriers post available trucks. Major load boards include DAT and Truckstop. Load boards are how many small carriers find loads.
- LTL (Less-Than-Truckload)
- Freight shipments that do not require a full trailer, typically between 150 and 15,000 pounds. LTL carriers consolidate multiple shippers' freight onto a single trailer.
O
- Owner-Operator
- A driver who owns the truck they drive, either operating under their own authority or leased on to a larger carrier. Owner-operators are independent business owners and are paid differently from company drivers.
P
- POD (Proof of Delivery)
- A document signed by the consignee confirming that goods were received in the agreed condition. PODs are typically required before a carrier can invoice for the load.
R
- Rate Confirmation
- A document sent by a broker or shipper to a carrier confirming the agreed-upon rate, pickup and delivery details, and load requirements for a specific shipment. Often abbreviated 'rate con.'
- Revenue Per Mile (RPM)
- The total revenue earned divided by total miles driven (loaded plus deadhead). RPM is one of the most common profitability metrics in trucking and is tracked at the load, lane, and fleet level.
T
- TMS (Transportation Management System)
- Software that helps trucking companies manage dispatch, fleet tracking, invoicing, driver settlements, IFTA reporting, and compliance from a single platform. A TMS replaces spreadsheets and disconnected tools by connecting every part of the operation, from load assignment to payment.
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