Add On Interest: An interest charge added to a base interest charge.
Agricultural Authority: A special type of operating authority granted to owner operators by the ICC. It allows owner operators who haul produce to also haul regulated commodities on their backhaul provided that the number of hauls of regulated commodities does not exceed the number of hauls of exempt produce.
All-Risk Cargo Insurance: Does not mean any and every possible risk; only certain common risks. Generally not available to owner operators.
Amortization: The gradual payment of a debt or the writing off of intangible assets over a period of time as they expire.
Assets: Future economic benefits obtained as a result of past transactions.
Audit of freight bills: The process of verifying the transportation charges shown on the carrier’s freight bill as reasonable.
Average gross revenue per loaded mile: Total payment received per mile traveled with a load.
Axle Weight: Weight carried by one axle.
Backhaul: A haul that returns you to home or base of operation.
Balance sheet: A financial statement listing all assets, liabilities and owner’s equity at a certain date.
BBC: The distance from the truck’s front bumper to the back of its cab.
Billed weight: The weight shown on a freight bill.
Bill of lading: Written transportation contract between shipper and carrier; it identifies who receives the freight and the place of delivery. It also gives terms of the agreement.
Bobtail: A tractor operating without a trailer.
Bobtail Insurance: Insurance covering accidents during non trucking use (i.e., not hauling a load; during maintenance service, etc.).
Bridge Formula: Federal regulation of how far apart the axles must be to legally carry a given weight.
Broker: A person who arranges loads for owner/operators.
Bulk Freight: Unpackaged freight, (for example, petroleum products).
Burden of proof: The obligation to prove disputed facts at issue in a legal proceeding.
Cargo Insurance: Insurance on the freight paid for by the carrier.
Carrier: A person, partnership or corporation engaged in the business of transporting goods.
Carrier’s Lien: Carrier’s claim on property it has transported as security for charges.
Cash Advance: Money received from carrier generally used for fuel and deducted from owner operator’s final settlement check.
Cash flow: Ready cash (net income plus set aside cash, as for depreciation).
Cash Disbursement Journal: A journal for keeping track of money being paid out.
Cash Receipts Journal: A journal for keeping track of money coming into a business.
CDL: Commercial Driver’s License: A license which authorizes an individual to operate commercial motor vehicles over 26,000 pounds gross vehicle weight.
Chargeable Accidents: An accident that a driver could have prevented whether or not it was his fault.
Charge backs: Those temporary costs assumed by the carrier for independent contractors. It is understood through the lease that these costs will be charged back to the independent contractor usually at settlement.
Clearing House: An organization set up to process and collect bills for participating trucking companies.
COE: Cab-Over-Engine: Truck/tractor design where the cab sits over the engine on the chassis.
Collateral: A pledge of security for borrowing money, usually a material possession.
Commodity: Any article of commerce, including raw material, manufactured or grown products.
Common Authority: Certificate from the ICC that allows the holder to haul regulated commodities in a for-hire trucking operation.
Common Carriers’ Insurance: Insurance that covers transportation company’s liability for loss of, or damage to, cargo or property being transported by them.
Consignee: The person or firm to whom articles are shipped.
Consignor: The person or firm who shipped the product.
Containerization: A shipping system based on large cargo carrying containers that can be easily interchanged between trucks.
Contract Carrier: Truckers who are providing dedicated service under contract to specific shippers using an ICC certificate.
Credit Life Insurance: A policy covering a buyer’s life, until the truck is paid off, thus guarantees payment.
CVSA: Commercial Vehicle Safety Alliance: An organization of federal, state and provincial government agencies and representatives from private industry dedicated to improving commercial safety.
Deadheading: Operating a truck with no load.
Depreciation: A decrease in value (usually for tax purposes); a reduction or loss in exchange for value or purchasing power.
Detention (Demurrage): Detention of a vehicle beyond the time normally allowed for loading, unloading, etc.
Disability Insurance: Insurance policy that covers income if a truck driver is unable to work for a few weeks or more.
Discretionary Income: Amount of money left after expenses.
Dispatcher: A person who schedules and controls intercity traffic and intracity pickup and delivery.
D.O.T.: United States Department of Transportation.
Doubles: A tractor with two semi trailers connected in tandem by a converter dolly.
Drayage: Trucking goods from a warehouse to a rail yard or vice versa. Drayage is the trucking component of intermodal transportation.
Escrow: Money held in trust by a third person with directions to use it for a specific purpose.
Exempt Carrier: Truckers hauling certain commodities that are exempt that may be transported in both interstate and intrastate commerce without operating authority ICC.
Exempt Commodity: Commodities that are moved interstate and intrastate by truck and not subject to regulation (i.e., any fresh fruit or vegetables except bananas).
Fixed Costs: Costs that have a long life, such as truck payment, mortgage, insurance, etc.
FOB: Free on Board: Usually indicates place where responsibility for expenses and risk for goods is passed from seller to buyer.
Forced Dispatch: Being forced to take a load whether the driver wants to or not.
Freight: Any commodity being transported.
Freight Bill: Document for a shipment with the description of the freight, weight, charges, rate for charges, taxes and whether it is a prepaid or collect shipment.
Freight Charge: Payment due for the transportation of the freight.
Fuel taxes: Taxes paid to each state a vehicle runs in based on miles driven in that state.
GCW: Gross Combination Weight: Total weight of tractor- trailer combinations, including trucks, trailers and payload.
GVW: Gross Vehicle Weight: Total weight of the loaded vehicle, including chassis, body and payload. Used to refer to the maximum GVW allowed by D.O.T. regulations.
Glider Kit: Truck that has been rebuilt, particularly component wise.
Health Insurance: Medical and Hospitalization insurance.
ICC: Interstate Commerce Commission: The federal body charged with enforcement of acts of Congress affecting interstate commerce.
IFTA: International Fuel Tax Agreement A system of centralized fuel tax payment allowing truckers to pay all state fuel taxes to a collection agency. This agency disburses funds to each state or provincial agency based on the total miles you reported traveling in each state.
Independent Contractors: Independent contractors are owner operators who lease themselves and their vehicles to trucking companies regulated by the ICC.
Individual Variable Costs: Costs that are variable and peculiar to a specific trucking operation such as accounting fees, helper wages, personal road expenses, etc.
Intermodal: Transportation movement involving more than one mode, example, rail motor, motor air, or rail water.
Interstate: Between states.
Intrastate: Within a state.
Jackknife: Placing the tractor/trailer at a very sharp angle resulting from lock-up of tractor drive axle(s).
Lading: The freight in a truck.
Liability Insurance: Insurance that covers any third party injuries or damages.
Line Haul: The movement of freight between distant points. It does not include pickup and delivery service, or intracity delivery.
Loaded Mile: Distance traveled with paid freight in a trailer.
Logbook: Drivers book containing daily hours, routes, etc., required by DOT regulation.
LTL: Less Than Truckload: A quantity of freight that is less than required for the application of a truckload rate.
Lumpers: Helpers hired to load/unload freight.
Manifest: A document describing a shipment or the contents of a vehicle.
MCSAP: The Motor Carrier Safety Assistance Program: Federal Government program distributing monies to help states conduct effective truck inspection and safety efforts.
MCS-90: A document that shows proof of adequate insurance.
NTSB: The National Transportation Safety Board: A Federal Government organization charged with investigating accidents in every sector of transportation, suggesting ways of improving transportation safety through effective regulatory requirements, and reporting on its findings and conclusions to Congress.
OTR: Over the road drivers.
Owner Operator: A person who owns one or more trucks and personally drives at least one of them. Also known as a small fleet owner operator if more than one vehicle is owned.
Payload: Total weight of the commodity carried on a truck including packaging, banding, etc.
Permanent Lease: A lease for at least 30 days where an owner operator leases himself and his equipment to a regulated carrier.
Permits: Permission granted to carriers by states to transport freight exceeding legal weight and size limits.
PIP: Personal Injury Protection: An insurance policy that provides personal injury protection.
PMs: Preventive maintenance inspection.
Pre Trip Inspection: A walk around inspection of a truck that every driver is required to perform prior to every trip in a commercial vehicle. This involves following a complete check list related to the particular type of vehicle being inspected. The pre-trip inspection is considered by experts to be one of the most neglected, potentially effective means of improving truck safety.
Principal: Actual amount of money borrowed; the amount that interest will be applied to a loan.
Private Carrier: A company that has its own trucks to transport its own freight.
Pro Rate: To distribute proportionately.
Rate: The charge for transporting freight.
Recourse Agreement: An agreement between buyer and seller whereby if a buyer defaults on payments and the truck is repossessed, the selling dealer must buy the truck from the lender for the unpaid balance. The dealer can sue the former owner for the balance if it is more than the truck is worth.
Regulated commodities: Commodities that are transported under governmental regulation.
Regulated Common carrier: Carriers that transport general commodities that are regulated by the ICC.
Rider Policy: An insurance policy provision that provides coverage to a passenger in a commercial vehicle.
Road Use Taxes: Annual federal tax applied to each vehicle.
Scale (Weigh) Station: A place where trucks are weighed to ensure that GVW and axle weights are below permissible levels.
Settlement: A net amount paid for hauling a load.
Surcharge: A charge above the usual or customary charge.
Surtax: An additional or extra tax.
Tandem: An assembly of two axles, either of which may be powered.
Tariff: A published rate for hauling goods.
TL: Truckload: A full or nearly full trailer of goods. Usually the shipment is made without stopover to load/unload.
Transportation Insurance: This insurance covers loss to shippers because of an accident to goods in transit.
Trip Recorder: On- Board Computer – Cab mounted device which records data such as speed, engine rpm, idle time and any other information that may be useful to trucking management.
U.S. DOT Number: Vehicle Registration Number. U.S Dot numbers are supplied without charge, and are required for all vehicles exceeding 10,000 lbs. GVW or GCW.
Variable costs: Equipment operating expenses which vary from trip to trip; for example, fuel, repairs, tires.
Workers’ Compensation: Compensation for work related injuries not covered by hospitalization.
