Why is financial management within a TMS crucial for trucking companies?
1/6/26, 7:23 PM
30 Trucking Terms Every New Carrier Needs to Know

The first time someone throws "deadhead," "lumper," and "TONU" at you in the same sentence, trucking can feel like a foreign language. Every industry has jargon. Trucking has more than most.
The problem is not just confusion. Misunderstanding terms costs money. A carrier who does not know what detention means cannot bill for it. Someone unfamiliar with accessorials leaves revenue on the table. New owners who cannot speak the language get taken advantage of by people who can.
This glossary covers the 30 terms that matter most for carriers entering the industry or scaling past their first few trucks. Not textbook definitions. Practical explanations of what each term means for your operation and your bottom line.
Operations and Dispatch Terms
1. Dispatch
The process of assigning drivers to loads and coordinating pickups and deliveries. Dispatch is the operational heartbeat of any carrier. Poor dispatch means empty trucks, missed appointments, and angry drivers. Smart dispatch means maximizing revenue per truck while keeping drivers productive and satisfied.
2. Load Board
An online marketplace where brokers post available freight and carriers search for loads. Major boards include DAT, Truckstop, and 123Loadboard. Load boards help fill empty trucks but typically offer lower rates than direct shipper relationships. Most carriers use them for backhaul freight rather than primary business.
3. Rate Confirmation (Rate Con)
The contract between carrier and broker or shipper that specifies load details, rate, pickup and delivery information, and terms. Never move freight without a signed rate con. This document is your proof of agreement and your foundation for billing. Automated document processing can turn rate cons into dispatched loads in seconds.
4. BOL (Bill of Lading)
The shipping document that travels with freight from origin to destination. The BOL describes what is being shipped, quantities, weight, and handling instructions. Drivers sign at pickup and delivery. Discrepancies between BOL and actual freight cause claims, so drivers should verify before signing.
5. POD (Proof of Delivery)
Documentation confirming freight reached its destination. Usually a signed BOL or delivery receipt. No POD means no proof you delivered, which means potential payment disputes. Getting PODs right directly impacts cash flow.
6. Deadhead
Miles driven without freight. Every deadhead mile costs money with zero revenue to offset it. Carriers track deadhead percentage as a key efficiency metric. Good operations keep deadhead under 15%. Poor planning pushes it above 25%. Cutting empty miles is one of the fastest ways to improve profitability.
7. Backhaul
A load picked up for the return trip after delivering primary freight. Backhauls reduce deadhead by generating revenue on miles you would drive anyway. Even a lower-paying backhaul beats driving empty.
8. Relay
A load transfer between drivers, typically at a terminal or drop yard. Relays extend freight range without pushing individual drivers beyond hours limits. Carriers running team operations or regional networks use relays to move freight coast-to-coast.
9. Drop and Hook
A delivery method where the driver drops a loaded trailer and hooks to a preloaded or empty trailer without waiting. Drop and hook eliminates loading and unloading wait time. Drivers love it. Carriers should seek shippers who offer it.
10. Live Load/Unload
The driver waits while freight is loaded or unloaded. Live loads take longer than drop and hook and often lead to detention charges. Track live load times to identify facilities that consistently waste driver hours.
Financial and Billing Terms
11. Cost Per Mile
Total operating costs divided by miles driven. This single metric determines whether loads are profitable. Without knowing your cost per mile, you cannot know if a rate makes money or loses it. Most carriers underestimate their true costs.
12. Revenue Per Mile (RPM)
Total revenue divided by total miles, including deadhead. RPM shows what you actually earn per mile across your operation. Compare RPM to cost per mile to see true profitability.
13. Accessorials
Additional charges beyond the base linehaul rate. Detention, lumper fees, layover, fuel surcharges, and TONU are all accessorials. Accessorial billing separates profitable carriers from those who leave money behind on every load.
14. Detention
A charge for driver wait time beyond the agreed free time at pickup or delivery, typically after 2 hours. Detention fees compensate carriers for lost productivity. Rates typically run $50-$100 per hour. Most carriers fail to bill detention consistently.
15. Lumper
A third-party worker who loads or unloads freight at warehouses. Lumper fees range from $50 to $400 per load. These should be billed back to brokers or shippers. Carriers who absorb lumper costs without reimbursement erode margins on every affected load.
16. TONU (Truck Ordered Not Used)
A fee charged when a load cancels after a truck has been dispatched. TONU protects carriers from absorbing costs when brokers or shippers cancel at the last minute. Standard TONU fees range from $200 to $400.
17. Factoring
Selling invoices to a third party for immediate payment at a discount. Factoring companies pay carriers quickly, typically within 24-48 hours, then collect from brokers. Carriers trade a percentage of revenue for faster cash flow. Factoring rates typically run 1-5% of invoice value.
18. Fuel Surcharge
An adjustable charge that fluctuates with diesel prices. Fuel surcharges help carriers recover fuel cost increases without renegotiating base rates. Most are calculated using DOE national diesel averages.
19. Linehaul
The base transportation charge for moving freight from origin to destination, excluding accessorials. When someone quotes a "rate," they usually mean linehaul. Total revenue includes linehaul plus all applicable accessorials.
Equipment and Fleet Terms
20. FTL (Full Truckload)
Freight that fills or is priced as a complete trailer. FTL shipping means one shipper, one load, direct routing. Most independent carriers focus on FTL because operations are simpler than LTL.
21. LTL (Less Than Truckload)
Freight that does not fill a trailer, consolidated with other shipments. LTL involves terminal networks, multiple stops, and complex pricing. Most LTL is handled by specialized carriers with hub-and-spoke operations.
22. Dry Van
An enclosed trailer without temperature control. Dry vans handle the majority of freight: packaged goods, consumer products, manufacturing components. They are the most common trailer type and typically the easiest entry point for new carriers.
23. Reefer
A refrigerated trailer with temperature control for perishable freight. Reefer operations demand higher rates but require specialized equipment, compliance with food safety regulations, and careful temperature monitoring.
24. Flatbed
An open trailer without walls or roof for oversized or non-standard freight. Flatbed trucking pays premium rates but requires skilled drivers, extensive securement equipment, and physical labor that dry van does not.
25. ELD (Electronic Logging Device)
A device that automatically records driving time for Hours of Service compliance. ELDs replaced paper logs and are mandatory for most commercial carriers. ELD integration with your TMS provides real-time visibility into driver availability and location.
Compliance and Regulatory Terms
26. HOS (Hours of Service)
Federal regulations limiting how long drivers can operate without rest. Key limits include 11 hours driving within a 14-hour window after 10 consecutive hours off duty. HOS violations earn CSA points and can put trucks out of service.
27. CSA (Compliance, Safety, Accountability)
FMCSA's safety measurement system that tracks carrier and driver violations. CSA scores affect insurance rates, broker relationships, and shipper contracts. Carriers with poor CSA scores lose business to cleaner competitors. Managing compliance protects your authority and your reputation.
28. MC Number
Motor Carrier number issued by FMCSA to carriers operating in interstate commerce. Your MC number identifies your authority to haul freight across state lines. Brokers and shippers verify MC numbers before tendering loads.
29. USDOT Number
A unique identifier assigned to commercial motor carriers by the Department of Transportation. USDOT numbers are required for interstate commerce and appear on every commercial vehicle. This number tracks your safety record and compliance history.
30. IFTA (International Fuel Tax Agreement)
A fuel tax agreement between US states and Canadian provinces that simplifies reporting for carriers operating across jurisdictions. IFTA requires quarterly filings that reconcile fuel purchased versus miles driven in each state. Errors trigger audits and penalties. Carriers need systems that track mileage by jurisdiction accurately.
Why Terminology Matters
Every term on this list connects to money. Revenue you can capture or miss. Costs you can control or ignore. Compliance you can maintain or violate.
New carriers who learn the language negotiate better rates because they understand what they are agreeing to. They bill accessorials because they know what qualifies. They avoid violations because they understand what regulators measure.
Carriers who scale from startup to serious fleet share one thing. They run operations with precision. Precision requires vocabulary. When everyone on your team speaks the same language, mistakes drop and efficiency climbs.
The metrics that matter use these terms. Your TMS uses these terms. Your brokers, shippers, and drivers use these terms. Fluency is not optional.
Build Your Operation on Solid Ground
Knowing the terminology is step one. Building systems that track, measure, and optimize every concept on this list is step two.
Datatruck is the carrier-first TMS that connects dispatch, billing, compliance, and financial visibility in one platform. From rate con to POD to invoice, every term on this list ties to workflows that run automatically when your operations are built right.
Stop guessing. Start running freight like the professionals who came before you.