Trucking Glossary

The total load pay divided by total miles driven. Your primary metric for evaluating whether a load is worth hauling. Gross RPM uses the full load pay; Net RPM subtracts fuel, overhead, and dispatch fees.

The minimum rate per mile you must earn to cover all fixed and variable costs — fuel, insurance, maintenance, truck payment, and dispatch fees. Any load below this number costs you money to haul.

The total amount a broker agrees to pay for a load before any deductions. This is the number on the rate confirmation. Your actual take-home will be lower after fuel, overhead, and dispatch fees.

What you actually keep after subtracting all operating costs from gross load pay. Calculated as: Gross Load Pay minus fuel, maintenance, insurance, truck payment, and dispatch fee.

The base pay for moving a load from origin to destination, excluding any accessorial charges. Accessorials like detention, fuel surcharge, or layover are added on top of the linehaul rate.

An additional per-mile or flat fee added to a load rate to offset fuel cost fluctuations. Some brokers include it in the all-in rate; others list it separately. Always confirm whether FSC is included or added.

Compensation owed when a shipper or receiver holds your truck beyond the free time window — typically 2 hours at each stop. Standard rates run $50–$75/hr. Must be stated on the rate confirmation to be enforceable.

Compensation paid when a broker cancels a load after you've already dispatched or repositioned your truck for it. Typically $150–$300. Always negotiate TONU into the rate confirmation before moving.

Compensation for being held at a shipper or receiver location overnight or for an extended period beyond the original appointment. Rates vary — negotiate before accepting the load.

A charge for third-party labor hired to unload freight at a receiver. Some brokers reimburse lumper fees; others do not. Confirm reimbursement policy on the rate confirmation before accepting.

Miles driven without a paying load — typically repositioning to a pickup location. Deadhead miles cost you fuel and time with no revenue. Factor them into your RPM calculation when evaluating a load.

Any charges beyond the base linehaul rate — detention, TONU, layover, lumper, fuel surcharge, stop-off pay, and more. Always confirm which accessorials are covered before accepting a load.

The primary shipping document that serves as a receipt for freight, a contract of carriage, and proof of delivery. You must have a signed BOL at pickup and delivery. It's required to invoice the broker.

The binding contract between you and the broker that specifies load pay, pickup/delivery details, commodity, and any agreed accessorials. Never move a load without a signed rate confirmation in hand.

Documentation confirming freight was delivered — typically a signed BOL or delivery receipt. Required by most brokers before they'll process your invoice. Keep copies of all PODs.

Motor Carrier number issued by the FMCSA. Required to operate as a for-hire carrier in interstate commerce. Brokers are also required to have an active MC number — verify it at safer.fmcsa.dot.gov.

A USDOT identification number required for commercial vehicles operating in interstate commerce. Used by the FMCSA to track safety records, inspections, and compliance history.

A device that automatically records driving time and Hours of Service (HOS) data. Required by federal law for most commercial drivers. Replaces paper logbooks and is used during roadside inspections.

A temperature-controlled trailer used to haul perishable freight — food, pharmaceuticals, and other temperature-sensitive cargo. Requires a refrigeration unit and temperature monitoring. Typically commands higher rates than dry van.

An enclosed, non-refrigerated trailer used for general freight. The most common trailer type in trucking. Versatile but typically lower rates than reefer due to higher carrier availability.

An open trailer with no sides or roof, used for oversized, heavy, or irregularly shaped freight — steel, lumber, machinery, and construction materials. Requires tarping and securement skills.

A consistent freight corridor between two markets that reliably produces well-paying loads in both directions. Building power lanes reduces deadhead miles and increases predictable revenue.

A load type where you drop your empty trailer at a facility and hook to a pre-loaded trailer — no waiting for loading. Faster than live loads and preferred by most carriers.

A pickup or delivery where you wait on-site while freight is loaded or unloaded. Increases dwell time and detention risk. Always confirm free time and detention rates before accepting.

A licensed intermediary who connects shippers with carriers. Brokers earn a margin on the load — the difference between what the shipper pays and what the carrier receives. Required to hold an active FMCSA license and $75,000 surety bond.

A third-party service that finds loads, negotiates rates, and handles paperwork on behalf of owner-operators. Unlike brokers, dispatch services don't take title to the freight — they work for the carrier, not the shipper.

An industry credit reporting service that rates freight brokers on payment history and reliability. Scores range from 0–100. A score below 70 is a red flag; above 90 is considered reliable.

An online marketplace where brokers post available loads and carriers search for freight. Common load boards include DAT, Truckstop.com, and 123Loadboard. Rates on load boards are often negotiable.

A financial service where a third-party company (factor) purchases your unpaid invoices at a discount and pays you immediately — typically within 24 hours. Eliminates waiting 30–45 days for broker payment.

An illegal practice where a broker re-brokers a load to another carrier without the shipper's knowledge. A major red flag. If you suspect double brokering, verify the load directly with the shipper before moving.