More freight terms shippers need to know

Navigating industry jargon can feel like you’re trying to crack a secret code and leave your head spinning, especially in the freight and logistics industries where acronyms and trucking-specific language abound.

“When I joined the industry and started my logistics company, it seemed like everyone was speaking their own language,” says Bryan Cuevas, CEO of C Group Logistics. “But, like any new concept, it takes just time and practice – and a little bit of patience.”

While abbreviations and business-specific lingo may be confusing initially, they can increase efficiency once you know what they mean and how they fit into your shipping operations. We’ve delved into key freight terminology once already, and we’re back to share more terms you’ll likely hear when shipping goods.

How carriers operate and how far drivers will travel is essential information when looking for a transportation provider. Three categories you need to know are over-the-road, regional, and drayage.

Over-the-road (OTR) freight refers to transporting goods by truck over long distances, spending days or weeks on the road. When you think of OTR, think long-haul trucking. OTR drivers frequently cross state lines and travel throughout the country.

Regional hauls are more local, typically around 250 miles, and drivers operate in a specific part of the country. Because they travel fewer miles at a time, regional drivers can generally get home much more often than OTR drivers.

Drayage drivers move containerized freight from ports or intermodal facilities to a facility nearby. They tend to focus on short-haul loads within a single area. For instance, there are many drayage drivers in the Port of Long Beach that bring containers off ships a short distance inland to warehouses and rail stations.

There are two primary load types in trucking—headhaul and backhaul. A headhaul is the primary, revenue-generating trip that takes a trailer with a load to its destination. When the trailer returns to its home location with a load, it is known as a backhaul. If the trailer is empty during this part of the journey, you’ll oftentimes hear it called a “deadhead.”

Knowing which type of haul your load is can be beneficial when securing capacity and obtaining a rate. A headhaul market means there is more demand for inbound freight to that location than for freight heading the other way. Florida, for example, tends to have more inbound than outbound freight. Backhauls can help carriers offset costs and cover expenses and often lead to cost savings for shippers because there is more supply than demand.

The trucking industry is regulated, and those regulations shape trucking operations, providers’ availability, and safety. The Federal Motor Carrier Safety Administration (FMCSA) is a division within the U.S. Department of Transportation that oversees commercial motor vehicles. It enforces safety regulations, issues operating licenses, and sets standards for commercial motor vehicle (CMV) drivers.

FMCSA regulates how many hours professional drivers can drive in a set period through hours-of-service (HOS) rules. HOS rules factor into planning and scheduling loads and impact how quickly a driver can deliver a load. Drivers must stay within their hours, which means they must stick to their schedules. Any delays in picking up or delivering a load, such as long waits at a shipper’s dock, can throw a wrench in their schedules and create a ripple effect of supply chain disruptions.

FMCSA also oversees the safety and compliance enforcement program: Compliance, Safety, Accountability (CSA). CSA give shippers insights into a carrier’s safety performance, regulatory compliance, and overall reliability, helping them make informed and strategic shipping decisions.

Professional drivers can be either solo drivers or team drivers. A solo driver is a single driver assigned to a load, whereas team driving involves two drivers who take turns operating the truck. Drivers must adhere to federal hours-of-service regulations, but, with team drivers, one driver can rest in the sleeper cab while the other is driving. Team drivers are an excellent solution for expedited deliveries but typically cost more.

Documentation is an integral part of the logistics industry. It helps track deliveries and confirms that freight was delivered on time and intact. Nearly every shipment will have a bill of lading (BOL) and proof of delivery (POD). The BOL is a legally binding document that must be filled out before a carrier hauls the freight. It details the type, quantity, and destination of the goods in the load and serves as a receipt once the carrier delivers the freight.

When freight is delivered, the recipient signs a POD. The POD confirms that the freight was delivered without visible damage and includes details such as delivery time, delivery address, and the consignee’s name.

Accessorial charges are additional fees related to the transportation of goods that are not included in the base freight rate. They usually apply to services that go beyond standard pick-up and drop-off and can consist of detention charges if drivers have to wait, loading and unloading fees if a driver is asked to help move cargo, and liftgate services. Accessorial charges add to the cost of moving goods, so it is important to define what is included in a contract, provide accurate documentation, and keep up with appointment windows.

There is a lot to learn within the world of freight, and we provide more information on our Freight 101 page. If you’re ready to get shipping today, create your account and start quoting loads immediately. You can tap into our more than 60,000 dry vans and the safe and reliable HAQM network.