Trucking & TMS glossary

An Electronic Logging Device (ELD) is a hardware device that plugs into a commercial motor vehicle's diagnostic port to automatically record a driver's Hours of Service (HOS). ELDs replaced paper logbooks under the FMCSA ELD Mandate and are required for most commercial drivers in the United States.

Hours of Service (HOS) are federal FMCSA regulations that limit the number of consecutive and cumulative hours a commercial driver can drive and be on duty. HOS rules are designed to prevent fatigue-related crashes and are tracked automatically by ELDs.

The International Fuel Tax Agreement (IFTA) is an agreement between the contiguous 48 US states and 10 Canadian provinces that simplifies fuel tax reporting for motor carriers operating across multiple jurisdictions. Carriers file one quarterly report and pay a net amount to their base jurisdiction.

A Bill of Lading (BOL) is a legal document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being transported. It serves as a receipt of shipment, a contract of carriage, and a document of title.

A Proof of Delivery (POD) is a signed document confirming that the consignee received the goods. In freight, the POD is typically the signed delivery copy of the Bill of Lading (BOL) and is required before the carrier can invoice or factor the load.

The Federal Motor Carrier Safety Administration (FMCSA) is the United States Department of Transportation agency responsible for regulating and enforcing safety rules for interstate commercial motor vehicle (CMV) operations. The FMCSA issues DOT numbers, MC authority, the ELD mandate, Hours of Service rules, and drug and alcohol testing requirements.

A USDOT Number is a unique identifier issued by the Federal Motor Carrier Safety Administration (FMCSA) to commercial motor carriers operating in interstate commerce or transporting hazardous materials. The DOT number is used to track a carrier's safety record, inspections, crashes, and compliance history.

A Motor Carrier (MC) Number is the operating authority issued by the FMCSA to for-hire motor carriers transporting regulated commodities across state lines. Unlike a DOT number (which identifies the carrier), an MC number grants the legal authority to haul freight for hire.

DAT Freight & Analytics is the largest freight load board in North America, matching carriers with available loads and offering real-time rate data for truckload freight. DAT load boards include DAT One, DAT Power, and DAT Express.

A load board is an online marketplace where brokers and shippers post available freight and carriers search for loads to book. Load boards power most of the spot-market freight in the United States.

Factoring, or freight invoice factoring, is the practice of selling a freight invoice to a factoring company in exchange for immediate cash — typically 95–98% of the invoice value within 24 hours. The factoring company collects the full invoice amount from the broker or shipper when payment arrives 30–90 days later.

Broker Quick Pay is an accelerated payment program offered by some freight brokers that pays carriers in 1–5 days instead of the standard 30–90 days, in exchange for a fee of typically 2–4% of the invoice.

A reefer is a refrigerated trailer equipped with a temperature-control unit that maintains a specific temperature range while hauling temperature-sensitive freight. Reefer trailers are used for produce, frozen food, dairy, meat, pharmaceuticals, and other climate-controlled loads.

A flatbed is an open-deck trailer with no sides or roof, used to haul oversized, heavy, or irregularly shaped freight such as steel coils, lumber, machinery, and construction materials. Flatbeds require load securement with straps, chains, and tarps.

A Hazmat (H) endorsement is a special endorsement added to a Commercial Driver's License (CDL) that authorizes the driver to transport hazardous materials. Obtaining the endorsement requires a TSA Threat Assessment, written knowledge test, and separate fees.

In trucking, PTO stands for Power Take-Off — a mechanism that transfers engine power to auxiliary equipment such as a dump hoist, garbage compactor, concrete mixer, or refrigeration unit. PTO hours are tracked separately from driving hours for IFTA fuel tax refunds and customer billing.

Deadhead is the miles a truck drives empty (non-revenue) between delivering one load and picking up the next. Deadhead miles burn fuel and driver hours without earning revenue, so reducing deadhead is one of the highest-leverage ways to improve carrier profitability.

Detention is the time a truck is held at a shipper or receiver beyond the agreed free loading or unloading window (typically 2 hours). Detention pay is an hourly fee — commonly $50–$100 per hour — that the shipper owes the carrier for the delay.

Demurrage is a penalty fee charged when equipment — typically a shipping container, rail car, or chassis — is held beyond the free time allowed at a port, rail terminal, or customer facility. In drayage and intermodal, demurrage and detention are distinct concepts and often stack.

A trucking dispatcher is the back-office operator who finds and books loads, assigns them to drivers, manages routes and schedules, handles rate negotiation, and communicates with brokers, shippers, and drivers throughout the trip.