Plain-language freight broker terminology: the billing, back-office, compliance, and intermodal terms we work with every day, defined the way freight ops people actually use them. Use the jump links to find a term, or browse the full list below.
A B C D E F G H I L M N O P Q R S T U W
Extra charges earned when a load needs more time, labor, or equipment than the base rate covers, such as detention, layover, lumper fees, or TONU. They are legitimate revenue, but only if someone captures and documents them before the invoice goes out. See pre-billing revenue audit and where revenue gets lost before the invoice.
What a broker or carrier owes its carriers and vendors. Clean AP means every carrier invoice is checked against the rate confirmation and supporting documents before it is paid. See carrier invoice audit.
What customers owe for delivered loads. AR is where cash flow is won or lost, because an invoice is not money until it is collected. See AR management and how to reduce DSO.
The electronic system used to file export declarations with U.S. Customs. Exporters or their agents file the Electronic Export Information (EEI) through AES before goods leave the country. Late or inaccurate filings can result in penalties.
A report that groups unpaid invoices by how long they have been outstanding, usually in 30, 60, and 90 day buckets. Rising aging is an early warning that follow-up has slipped. See AR follow-up cadence.
A return trip that carries freight instead of running empty. Backhaul loads typically move at lower rates because the carrier needs to reposition the truck anyway. For a broker, backhaul pricing affects the margin on the original lane.
The core legal document for a shipment. It records the freight, the parties, and the terms, and it often has to match the invoice and POD before a customer will pay.
The time from when a load delivers to when the invoice goes out and payment arrives. Every day of delay in that cycle adds directly to DSO. See signs your billing team is the bottleneck.
A charge for rapidly freezing product to a target temperature at a cold storage facility. It is a handling fee that should be captured on the customer invoice when the service is performed.
A warehouse authorized by customs authorities for storing imported goods before duties are paid. The importer can defer duty payment until the goods are removed for domestic sale or re-exported. Bonded storage fees are a common passthrough charge.
The reference number assigned by an ocean carrier or terminal for a reserved container slot on a vessel. It is the key identifier for tracking a container from booking through delivery and should appear on the drayage billing file.
The daily work of recording, categorizing, and reconciling transactions so the accounting system stays accurate. In freight it carries extra volume from carrier payments, accessorials, and shipper invoices. See outsourced freight bookkeeping and bookkeeping vs CPA.
The contract between a freight broker and a carrier that establishes the terms for hauling freight, including payment terms, insurance requirements, and dispute resolution. It sits alongside the rate confirmation as part of the compliance file.
Verifying and monitoring a carrier authority, insurance, and safety rating, both at onboarding and on an ongoing basis. The risk is that a carrier looks fine at signup and lapses later. See carrier compliance monitoring and compliance gaps that create liability.
Checking each carrier invoice against the rate confirmation, POD, and approved accessorials before payment, to catch duplicates, overbilling, and unauthorized charges. See carrier invoice audit and how it protects margin.
The process of vetting and setting up a new carrier before tendering a load, including verifying authority and insurance, checking the safety rating, and collecting required documents. Doing it thoroughly up front is what prevents compliance problems and fraud exposure later. See carrier compliance and compliance gaps that create liability.
The set of documents a carrier submits to a broker or shipper during onboarding: W-9, insurance certificate, operating authority verification, and signed broker-carrier agreement. A complete carrier packet is the foundation of carrier compliance.
Matching each incoming payment to the right open invoices, splitting partial payments correctly, and posting the result in the accounting system the same day. Accurate application is what makes an AR aging report trustworthy enough to act on. See AR management.
A document proving a carrier carries the required insurance. COIs expire, so they have to be tracked and refreshed before a load is tendered to a carrier whose coverage has lapsed. See why insurance costs are climbing.
A document certifying the country where the goods were manufactured or produced. Required for many international shipments to determine tariff treatment and eligibility for trade agreement preferential rates.
A deduction or claim a customer applies against an invoice, often for a documentation or pricing discrepancy. Clean, well-documented invoices are the best defense.
A chassis is the frame that carries an ocean container on the road. A chassis split is the extra trip and fee that occurs when the chassis and the container are in different locations and have to be brought together.
The charge for using the wheeled frame that carries an ocean container on the road. Chassis fees vary by provider, location, and whether the chassis is interchangeable or pool-based. See chassis and chassis split in the glossary.
A fee charged at certain ports for trucks that do not meet emissions standards, or a surcharge applied to fund clean air programs. Common at California ports. It is a passthrough charge that should appear on the drayage invoice.
The unbroken series of temperature-controlled handling, storage, and transportation steps that keep perishable products within a required temperature range from origin to destination. A break in the cold chain can result in product rejection and claims.
The active work of pursuing payment on invoices that are due or overdue, including following up with customers, resolving disputes, and escalating aging accounts. It is the action behind the AR aging report, and consistent follow-up is what keeps DSO down. See AR management and AR follow-up cadence.
The document the seller provides to the buyer in an international transaction, listing the goods, their value, and the terms of sale. It is required for customs clearance and should match the bill of lading and packing list.
A flatbed trailer equipped with a rolling tarp system that can be opened for top or side loading and then closed to protect freight like an enclosed trailer. Conestoga trailers are used for freight that needs flatbed loading flexibility but also needs weather protection during transit.
The party that receives the freight at its destination. The consignee usually signs the POD, so a clean delivery record, including any detention or damage notes, depends on capturing that signature.
The practice of recording temperature data throughout the entire transit of a temperature-sensitive shipment using data loggers or telematics. Required for many pharmaceutical and food shipments under FSMA and GDP regulations.
Moving freight directly from an inbound truck or container to an outbound truck without putting it into storage. Cross-docking reduces handling and storage costs but adds coordination complexity to billing when multiple parties are involved.
A financial guarantee required by U.S. Customs and Border Protection for importing goods. A single-entry bond covers one shipment. A continuous bond covers all imports for a 12-month period. The bond ensures that duties, taxes, and fees owed to CBP will be paid.
A licensed individual or firm that handles customs entry filings, duty calculations, and regulatory compliance on behalf of importers and exporters. Customs brokerage fees are a common line item on international freight invoices.
The average number of days between invoicing a load and collecting the cash. It is the single clearest measure of back-office and cash-flow health for a brokerage. See how to reduce DSO and the DSO calculator.
Miles a truck drives without a load, typically between the carrier’s last delivery and the next pickup. Deadhead is a cost the carrier absorbs unless it is built into the rate or compensated through a TONU or repositioning charge.
A charge from the terminal when a loaded container sits at the port or rail ramp beyond its free time. The clock runs whether or not anyone is watching it.
A charge that applies when a truck and driver are held at a shipper or consignee beyond the free time allowed for loading or unloading. It is one of the most commonly missed billable events. See how to capture detention charges.
A pricing method used in LTL and parcel shipping where the shipment is charged based on the space it occupies (dimensions) rather than its actual weight, whichever produces the higher charge. Errors in dimension capture create billing discrepancies. See LTL.
When a broker or carrier accepts a load and then re-brokers it to another carrier without the shipper’s knowledge or authorization. It is a major fraud and liability risk in freight, which is exactly why carrier vetting and ongoing monitoring matter. See carrier compliance and rising freight fraud.
The short-haul trucking of a container between a port or rail ramp and its final destination. It carries its own set of accessorials, from chassis fees to per diem.
A trucking company that specializes in the short-haul movement of containers between ports, rail ramps, and warehouses. Drayage carriers deal with port-specific accessorials including chassis fees, per diem, and terminal charges. See drayage.
A company that holds both broker authority and motor carrier authority, running a brokerage and an asset fleet side by side. The operations can sit under one company or as separate entities, and each authority carries its own insurance and compliance requirements. See carrier compliance.
A refund of customs duties paid on imported goods that are subsequently exported or destroyed. Claiming a drawback requires matching freight records to customs entries, which makes organized freight documentation essential.
Adjusting a freight company’s reported earnings to what would transfer to a buyer: removing above-market or below-market owner compensation, family payroll, personal expenses run through the business, one-time costs, and related-party rent at non-market rates. Each add-back needs documentation, because adjusted earnings price at a multiple in a sale. See preparing a freight company for sale.
Returning an empty ocean container to the designated terminal or depot after the freight has been unloaded. Late empty returns trigger per diem charges from the steamship line. Tracking the return deadline and documenting the return are part of drayage billing.
A vehicle that accompanies an oversized or overweight load to warn other traffic and ensure safe passage. Escort requirements and costs vary by state and load dimensions. The charges are a passthrough that should appear on the customer invoice.
The scheduled sequence of contacts that runs on every open invoice: confirmation the invoice was received, a touch before the due date, and escalation at set intervals once it is past due. A dunning cadence runs on triggers, so nothing depends on someone remembering to chase. See AR management and AR follow-up cadence.
Selling open invoices to a third party (a factor) for immediate cash, in exchange for a fee. It trades a slice of margin for faster cash flow, which is why tightening DSO is often the cheaper alternative.
The operating authority the Federal Motor Carrier Safety Administration grants a carrier. It must be active and in good standing for a carrier to legally haul a load. See 2026 FMCSA compliance changes.
The window allowed before a charge begins: free time at the terminal before demurrage, free days on a container before per diem, and free time at the dock before detention. When it runs out, the charge starts.
The practice of having an outside party review freight invoices for accuracy before payment. A third-party freight audit catches duplicate charges, rate discrepancies, and unauthorized accessorials. See carrier invoice audit.
The classification assigned to LTL freight based on density, handling, stowability, and liability, using the National Motor Freight Classification system. The freight class determines the rate. Reclassifications after the initial BOL can change the invoice amount.
A company that arranges the transportation of goods on behalf of shippers, typically across international borders using multiple carriers and modes. Freight forwarders coordinate ocean, air, rail, and truck transportation and handle documentation, customs clearance, and consolidation. See back-office support for freight forwarders.
Federal legislation that requires documented sanitary transportation practices for shipments of human and animal food. For reefer carriers and cold chain 3PLs, FSMA means maintaining temperature records and shipper-carrier agreements for every qualifying shipment.
A shipment that fills, or is priced as, an entire truck and moves directly from origin to destination. It is the natural pair to LTL, where a load shares trailer space with other freight.
A designated area within the United States where goods can be imported, stored, handled, and re-exported without being subject to customs duties until the goods enter U.S. commerce. FTZs allow importers to defer or reduce duty payments and are common near major ports.
A variable charge added to a base rate to offset changing fuel costs. It needs to be calculated correctly on each invoice, because errors here repeat across every load.
A fee charged by a port terminal or rail facility for trucks entering or exiting the gate. Gate fees are a drayage accessorial that should be captured on the customer invoice when applicable.
The additional CDL endorsement a driver needs to haul hazardous materials. Carriers hauling hazmat must have drivers with valid endorsements, and the endorsement status should be verified during carrier onboarding and monitored ongoing.
A charge for the product remaining in a tank trailer after offloading, which represents either product loss or disposal cost. The heel is typically the customer’s responsibility and should be documented and billed.
A carrier that uses a pickup truck or medium-duty truck with a flatbed or gooseneck trailer to haul smaller, time-sensitive loads. Hotshot carriers typically handle expedited or partial loads that do not require a full-size tractor-trailer.
The classification code used to determine the duty rate on imported goods. The correct HTS code affects how much duty the importer pays. Misclassification can result in overpayment, underpayment, or penalties.
Standardized international trade terms published by the International Chamber of Commerce that define who pays for shipping, insurance, and duties at each point in the supply chain. The Incoterm on a transaction determines where billing responsibility transfers between buyer and seller.
An LTL accessorial fee for delivering freight beyond the loading dock, inside the building to a specified location. It adds handling cost and should appear on the invoice when the service is performed. See LTL.
Invoicing between companies under common ownership, such as a brokerage tendering a load to its affiliated fleet. Each side records the transaction in its own books so entity-level margin and consolidated reporting both stay accurate. Missed intercompany invoices distort the P&L of every entity involved. See freight bookkeeping.
Freight that moves on more than one mode, typically a container traveling by ocean or rail and then by truck. Each leg adds documents, accessorials, and deadlines to the billing file.
A U.S. Customs requirement that importers file security information about ocean shipments at least 24 hours before the cargo is loaded at the foreign port. Late or inaccurate ISF filings result in penalties. The filing is typically handled by the customs broker.
A charge that applies when a driver has to wait overnight because a pickup or delivery is delayed. Like detention, it is billable only when it is documented.
A bank-issued guarantee of payment in international trade, conditional on the seller presenting compliant shipping documents. In freight, the letter of credit drives strict documentation requirements: the bill of lading, commercial invoice, and packing list must match the credit terms exactly or the bank rejects payment.
An LTL and delivery accessorial for using a hydraulic lift on the truck to lower freight to ground level at locations without a loading dock. Liftgate charges are added when the delivery address does not have dock-height access.
An LTL fee applied when the delivery location is difficult to reach, such as construction sites, schools, military bases, or locations with narrow access. The surcharge compensates for the extra time and difficulty.
A digital marketplace where brokers post available loads and carriers search for freight to haul. Major load boards include DAT, Truckstop, and 123Loadboard. Load board activity feeds into rate market data.
The spread between what the shipper pays and what the carrier is paid on a load. Missed accessorials and overpaid carrier invoices both eat directly into it.
The practice of securing freight on a flatbed or open-deck trailer using chains, straps, binders, and edge protectors to prevent shifting during transit. FMCSA regulations specify securement requirements by cargo type. Securement costs may be an accessorial charge.
A specialized flatbed trailer with a very low deck height, designed for hauling tall or heavy equipment like construction machinery. Lowboy loads often require permits and escorts, and the equipment surcharge should appear on the invoice.
A shipment too small to fill a trailer, so it shares space with other freight and is priced by weight, freight class, and space used. LTL billing carries extra accessorials and class-based pricing that are easy to get wrong.
Third-party labor that loads or unloads freight at a warehouse. The lumper fee is usually a passthrough that should be billed back to the customer, and it is easy to miss if the receipt never reaches billing.
The motor carrier number the FMCSA assigns to a carrier or broker operating in interstate commerce. It identifies the company in FMCSA systems and has to be active and in good standing to legally move freight. See 2026 FMCSA compliance changes.
A freight business run as more than one company, such as a brokerage, an asset fleet, and a warehouse under common ownership. The operations may share one MC, hold separate authorities, or include entities with no MC at all. Each entity needs its own billing, books, and compliance tracking, with intercompany transactions recorded on both sides. See intercompany billing.
An LTL accessorial where the carrier must call the consignee to schedule a delivery appointment before arriving. The notification fee is typically a per-shipment charge.
A freight forwarder that issues its own bills of lading and contracts with ocean carriers for container space, effectively acting as a carrier to the shipper without owning vessels. NVOCCs must be licensed and bonded with the FMC.
A state-issued permit required for loads that exceed standard legal dimensions or weight limits. Permits are route-specific, and the cost is a passthrough that should appear on the customer invoice. Each state has different permit requirements and fees.
A pricing measure for smaller owner-operated freight companies: EBITDA plus one full-time owner’s total compensation, benefits, and personal expenses run through the business. It reflects what a single owner actually takes out, and is the common valuation basis below roughly $5 million in revenue. See EBITDA normalization.
A truck driver who owns their own equipment and operates either independently or under a carrier’s authority. Owner-operators receive settlement statements rather than paychecks, and their pay depends on accurate billing upstream.
A daily charge from the steamship line for the use of a container beyond the allowed free days. It can keep running after the container leaves the terminal, while it is being unloaded or waiting to be returned empty.
A fee or surcharge program at certain ports, most notably Los Angeles and Long Beach, that charges truckers for daytime gate access to manage congestion. The fee can be avoided by using off-peak hours. It is a drayage accessorial that should be passed through on the invoice.
Federal regulations requiring hazardous materials shipments to display diamond-shaped placards on all four sides of the vehicle indicating the hazard class. Compliance is verified at pickup and monitored as part of carrier qualification for hazmat loads.
The signed document confirming a load was delivered. Many customers will not pay until the POD is attached to the invoice, so slow POD retrieval directly delays cash. See POD retrieval and POD chase best practices.
An additional fee charged by ocean carriers or terminals when port congestion causes delays and increased costs. It is a variable charge that should be verified on the carrier invoice and passed through to the customer on drayage and intermodal shipments.
A review of the shipment file for missed billable charges, such as detention, per diem, or accessorials, before the customer invoice goes out. Catching them up front is far easier than rebilling later. See pre-billing revenue audit and the pre-billing audit checklist.
A fee for pre-cooling a reefer trailer to the required temperature before loading temperature-sensitive cargo. The charge is a carrier cost that should be passed through on the customer invoice or built into the reefer rate.
The requirement that a tanker’s previous cargo must be compatible with the next product loaded. Incompatible products require a full wash-out between loads. Compatibility records should be tracked as part of tanker operations compliance.
A program that pays a carrier sooner than standard terms in exchange for a small fee or discount. It helps carriers with cash flow, and for a broker it is one lever to weigh against factoring and DSO.
The document that fixes the agreed rate and terms between the broker and the carrier. It is the baseline every carrier invoice should be audited against.
Sending a corrected or additional invoice after the original already went out, usually to capture a charge that was missed the first time. Rebilling is harder to collect and invites disputes, which is why a pre-billing audit that catches the charge before the invoice goes out is the better path. See pre-billing revenue audit and where revenue gets lost.
A charge applied by an LTL carrier when the actual freight class of a shipment differs from the class listed on the BOL. Reclassification changes the rate and should be verified against the product’s actual NMFC classification before being accepted.
A trucking company that operates refrigerated trailers to transport temperature-sensitive freight: produce, dairy, meat, frozen goods, and pharmaceuticals. Reefer carriers deal with accessorials that do not exist on dry freight, including reefer fuel surcharges, pre-cooling charges, and temperature monitoring fees. See back-office support for reefer carriers.
A surcharge covering the fuel cost of running the refrigeration unit on a reefer trailer. The reefer unit burns fuel independently of the tractor, and the surcharge should be calculated and billed separately from the standard fuel surcharge.
An LTL accessorial fee for deliveries to residential addresses, which typically lack docks and may require liftgate service. The surcharge compensates for the additional time and handling.
The detail a customer sends with a payment showing which invoices it covers and what, if anything, was deducted. Payments that arrive without remittance detail are a main source of unapplied cash and extra follow-up work.
Re-weighing freight, often at a scale. A weight discrepancy between the BOL and the actual weight can change the freight class and the rate, and the invoice has to be adjusted to match.
A specialized lowboy trailer with a detachable front section that allows equipment to be driven or rolled onto the deck from ground level. RGN loads carry equipment surcharges and often require permits.
Paying carriers or owner-operators for completed loads, with the backup to support each payment. Accurate settlement depends on a clean invoice audit upstream.
Invoicing the customer accurately and on time, with the correct rate, references, and documents attached. A clean invoice is the difference between getting paid on schedule and chasing a balance. See shipper billing.
The party listed on the bill of lading as the shipper. The shipper of record is responsible for the accuracy of the freight description, classification, and weight, and may be liable for charges and claims arising from errors.
A spot rate is the current market price for a one-time shipment. A contract rate is a negotiated price for a set period and volume commitment. Contract rates provide rate stability but need to be monitored because carriers and brokers sometimes invoice at the spot rate instead of the contract rate.
An ocean carrier that operates container vessels on scheduled routes. Steamship lines charge ocean freight, terminal handling, per diem on containers, and various surcharges. Their invoices need to be audited against the booking confirmation.
A flatbed trailer with a lowered rear deck section that accommodates taller freight while staying within legal height limits. Step-deck loads may carry equipment surcharges and sometimes require permits for oversized cargo.
A payment for less than the invoice amount, usually because the customer disputes one line item, most often detention, TONU, or a lumper fee. A short-pay is a claim against the load, and answering it takes the POD, rate confirmation, or accessorial backup behind the charge. See AR management and shipper payment disputes.
Reusing an imported container directly for an export load instead of returning it empty first. It saves a trip and can reduce per diem exposure when it is coordinated well.
The bond every freight broker must carry, currently $75,000, filed with the FMCSA as the BMC-84. It protects carriers and shippers if the broker fails to pay, and a lapse can suspend the broker authority.
Documentation proving a tank trailer has passed required pressure and leak testing. DOT regulations specify testing intervals. A current tank test certification is a compliance requirement for tanker carriers and should be part of the onboarding file.
A charge for covering flatbed freight with a tarp to protect it from weather and road debris. Tarping is labor-intensive and the fee should be documented on the rate confirmation and invoiced to the customer.
An event where the temperature inside a reefer trailer goes outside the required range during transit, potentially compromising the product. Excursions can result in load rejection and claims. Documentation of temperature maintenance throughout transit is the carrier’s primary defense.
A device that continuously records temperature inside a reefer trailer during transit. Required for many pharmaceutical and food shipments. The recorder cost is a passthrough that should appear on the customer invoice.
A fee charged by the port terminal for handling containers at the origin or destination port, covering crane operations, yard storage, and gate processing. THC is typically included in the ocean freight rate or billed separately, and it should be verified on every ocean carrier invoice.
A provider that manages logistics for shippers across multiple modes, carriers, and warehouses. 3PLs carry extra billing complexity from customer-specific rules and multi-party moves. See back-office support for 3PLs.
The software a broker, 3PL, or carrier uses to manage loads, carriers, documents, and billing. ClearLane works inside your existing TMS rather than replacing it, so your data and workflow stay where your team already operates.
A fee owed to a carrier when a booked load is canceled after a truck has already been dispatched. If the broker does not flag it, the carrier gets paid but the shipper never gets billed.
Transferring cargo from one transportation mode or container to another during transit, such as unloading an ocean container into domestic trailers at a warehouse. Transloading adds handling charges and documentation to the billing file.
A tamper-resistant biometric credential issued by TSA that is required for unescorted access to secure areas of maritime facilities and vessels. Drayage drivers picking up or delivering at port terminals must carry a valid TWIC card.
Money that has been received but not yet matched to specific invoices, so it sits in a holding bucket while the invoices it should clear keep aging. Unapplied cash hides real money and distorts the AR aging report until it is cleared.
The unique identifier the US Department of Transportation assigns to a registered carrier, used to track safety, inspections, and compliance. It often appears alongside the MC number when verifying that a carrier is authorized and in good standing. See carrier compliance.
The charge for cleaning a tank trailer between loads, especially when switching between incompatible products. Wash-out costs vary by product type and cleaning requirements. The fee is a carrier cost that should be documented and passed through or built into the rate.
The cash a business has available to operate. For brokers and 3PLs it is tied directly to DSO, because carriers and vendors often need to be paid before customers pay. See the cost of carrying back-office work in-house.
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Related references: the accessorial charge reference covers who pays each charge and what documents prove it, and the freight back-office benchmarks collect the planning figures behind them.
Related references: the accessorial charge reference covers 24 charge types in detail, the freight billing document reference maps the billing packet, and the freight back-office benchmarks give the planning ranges.
