Trucking glossary: 49 terms every back-office pro uses

A

Accessorial

An extra charge on a load beyond the linehaul rate: detention, layover, lumper, TONU, extra stop, tarp. Paid only with written broker approval. Read the guide → · Billing, Factoring & Payroll course

Advance rate

The share of an invoice a factoring company pays right away, usually 90–100%. Read the guide → · Billing, Factoring & Payroll course

Aging report

A list of open invoices grouped by age: 0–30, 31–60, 61–90 and 90+ days. Billing's most important weekly report. · Billing, Factoring & Payroll course

B

Bill of lading (BOL)

The shipping document signed at pickup that describes the freight, pieces and weight. Part of the billing package. Read the guide → · Billing, Factoring & Payroll course

Bill To

The field on the rate confirmation that names who pays for the transport. That company is your customer for the invoice. Read the guide → · Billing, Factoring & Payroll course

Bobtail

A tractor driving without a trailer. Bobtail insurance covers the truck when it is not under dispatch. Read the guide → · Billing, Factoring & Payroll course

BOC-3

The FMCSA filing that names a process agent in every state. Required for carriers and brokers. Read the guide → · Safety & Compliance course

Broker bond

The $75,000 surety bond or trust fund every freight broker must keep, so unpaid carriers can file a claim. Read the guide → · Dispatching course

Buyback

In recourse factoring, the carrier repays an invoice the broker did not pay within the contract period. Read the guide → · Billing, Factoring & Payroll course

C

Chargeback

Money a broker takes back after paying, for damage, shortage, lateness or double payment. Read the guide → · Billing, Factoring & Payroll course

Clearinghouse

FMCSA's Drug & Alcohol Clearinghouse. Carriers must query it before hiring a CDL driver and annually. · Safety & Compliance course

Company driver

A driver who drives the company's truck, usually paid per mile or a percentage of freight, with fuel and repairs paid by the company. Read the guide → · Billing, Factoring & Payroll course

CPM (cents per mile)

A driver pay method: paid miles × rate, for example $0.80 per mile. Read the guide → · Billing, Factoring & Payroll course

Cut-off

The daily time by which invoices must reach the factoring company to be funded the same day. Read the guide → · Billing, Factoring & Payroll course

D

Deadhead

Empty miles driven without a load, usually to the next pickup. Unpaid, so they lower the true rate per mile. Read the guide → · Dispatching course

Detention

Pay for waiting at a shipper or receiver beyond the free time, usually after 2 hours, charged per hour. Read the guide → · Dispatching course

Double brokering

Re-brokering a load without authorization, then collecting the payment and disappearing. The carrier that hauled it goes unpaid. Read the guide → · Dispatching course

DQ file

The Driver Qualification file every carrier keeps for each CMV driver under 49 CFR 391.51. · Safety & Compliance course

Drop and hook

The driver drops a trailer and picks up a loaded one instead of waiting for live loading or unloading. · Dispatching course

DSO

Days Sales Outstanding: the average number of days it takes to collect an invoice. · Billing, Factoring & Payroll course

E

ELD

Electronic Logging Device that records a driver's hours of service. · Safety & Compliance course

Escrow

A deposit held from an owner-operator's or driver's pay, returned at the end of the contract per its terms. Read the guide → · Billing, Factoring & Payroll course

F

Factoring

Selling freight invoices to a factoring company for fast cash, minus a fee. Read the guide → · Billing, Factoring & Payroll course

FCFS

First come, first served: a pickup or delivery with no appointment time, within the facility's hours. · Dispatching course

H

Hours of service (HOS)

Federal limits on driving and on-duty time, such as 11 hours of driving after 10 hours off duty. Read the guide → · Dispatching course

L

Layover

A flat payment when the truck loses a full day because of the customer. Read the guide → · Dispatching course

Lease operator

A driver who leases a truck through the carrier and is paid a percentage of freight minus a weekly truck lease and other deductions. Read the guide → · Billing, Factoring & Payroll course

Linehaul

The base rate for moving the load, before accessorials and fuel surcharge. Read the guide → · Billing, Factoring & Payroll course

Load board

An online marketplace where brokers post loads and carriers post trucks, such as DAT and Truckstop. Read the guide → · Dispatching course

Lumper

A worker or service paid to unload freight at a warehouse. Reimbursed with the original receipt and broker approval. Read the guide → · Billing, Factoring & Payroll course

M

MC number

The operating authority number FMCSA issues to for-hire carriers and brokers. Read the guide → · Dispatching course

MCS-150

The form that updates a carrier's USDOT registration data, required at least every 2 years. · Safety & Compliance course

N

Net 30

Payment due 30 days after the invoice date. Read the guide → · Billing, Factoring & Payroll course

NOA (Notice of Assignment)

A letter telling a broker to pay a carrier's invoices to the factoring company instead of the carrier. Read the guide → · Billing, Factoring & Payroll course

Non-recourse factoring

Factoring where the factoring company absorbs bad debt, usually only if the broker is insolvent, not disputes. Read the guide → · Billing, Factoring & Payroll course

O

Owner-operator

A driver who owns the truck and is paid a percentage of freight, paying their own fuel, insurance and repairs. Read the guide → · Billing, Factoring & Payroll course

P

POD (proof of delivery)

The delivery document signed by the receiver, with printed name and date. Required to get paid. Read the guide → · Billing, Factoring & Payroll course

Q

Quick pay

An option to be paid in a few days instead of 30–45, for a discount of about 1–5%. Read the guide → · Billing, Factoring & Payroll course

R

Rate confirmation (RC, rate con)

The broker's written contract for a load: rate, stops, freight, requirements, accessorials and terms. Read the guide → · Dispatching course

Recourse factoring

Factoring where the carrier must buy back invoices the broker does not pay. Read the guide → · Billing, Factoring & Payroll course

Remit To

The invoice field that tells the payer where to send the money: the carrier's account or the factoring company's. Read the guide → · Billing, Factoring & Payroll course

Reserve

The part of an invoice a factoring company holds back until the broker pays. Read the guide → · Billing, Factoring & Payroll course

RPM (rate per mile)

Load rate divided by miles. True RPM includes deadhead miles. Read the guide → · Dispatching course

S

SAFER

FMCSA's public Company Snapshot site showing a carrier's or broker's status, authority and inspection summary. Read the guide → · Safety & Compliance course

Settlement

A driver's weekly pay statement: loads plus credits minus deductions. Read the guide → · Billing, Factoring & Payroll course

Short pay

A payment smaller than the invoice amount, usually with a reason on the remittance. Read the guide → · Billing, Factoring & Payroll course

SMS / CSA

FMCSA's Safety Measurement System that scores carriers in BASIC categories from inspections and crashes. · Safety & Compliance course

T

TONU

Truck Ordered, Not Used: a fee when a load is cancelled after the truck was dispatched or arrived. Read the guide → · Dispatching course

U

USDOT number

The federal identifier for a motor carrier, shown on both sides of every truck. · Safety & Compliance course