Freight & Trucking Glossary
30 freight industry terms defined in plain language — covering FMCSA compliance, carrier safety metrics, operating authority, risk indicators, and shipping fundamentals. Each definition includes related terms, external sources, and frequently asked questions.
C
Cargo Liability
A carrier's legal and financial responsibility for loss or damage to freight while in its possession during transportation.
Carrier Authority
The legal permission issued by FMCSA (typically as an MC number) that allows a motor carrier to transport goods or passengers for compensation in interstate commerce.
Carrier Vetting
The process of verifying a motor carrier's authority, insurance, safety record, and risk indicators before tendering freight.
Chameleon Carrier
A motor carrier that reincorporates under a new name and DOT number to evade its previous safety record, enforcement history, or out-of-service orders.
Common Carrier
A for-hire carrier that offers transportation services to the general public and is obligated to serve all shippers without discrimination.
Contract Carrier
A for-hire carrier that provides transportation services under specific negotiated contracts with individual shippers rather than serving the general public.
Crash Indicator
A BASIC category that measures a carrier's crash involvement frequency relative to its exposure (fleet size and miles traveled).
CSA Score
Compliance, Safety, Accountability — FMCSA's comprehensive safety program that evaluates and ranks motor carrier safety performance using inspection and crash data.
D
DOT Number
A unique identifier assigned by the FMCSA to commercial motor carriers operating in interstate commerce.
Double Brokering
The illegal practice of a carrier accepting a load under its own authority then secretly re-brokering it to another carrier without the shipper's or original broker's knowledge.
Driver Fitness BASIC
One of FMCSA's seven safety categories measuring carrier compliance with driver qualification requirements including licensing, medical certificates, and training.
F
FMCSA Authority
Official permission from the Federal Motor Carrier Safety Administration to operate as a for-hire carrier, broker, or freight forwarder in interstate commerce.
Freight Broker Bond
A $75,000 surety bond (BMC-84) required by FMCSA for all licensed freight brokers, protecting carriers and shippers against broker non-payment.
Freight Factoring
A financial service where carriers sell their unpaid invoices (receivables) to a factoring company at a discount in exchange for immediate cash payment.
FTL Freight
Full Truckload shipping where a single shipper's cargo occupies an entire trailer, providing direct origin-to-destination service without intermediate handling.
H
Hazmat Endorsement
A special CDL endorsement (H or X) that authorizes a driver to transport hazardous materials requiring placards under DOT regulations.
Hours of Service (HOS)
Federal regulations limiting how long commercial drivers can operate vehicles before mandatory rest periods to prevent fatigue-related crashes.
L
Load Board
A digital marketplace where freight brokers and shippers post available loads and carriers search for freight that matches their equipment, location, and capacity.
LTL Freight
Less-Than-Truckload shipping where multiple shippers share trailer space for shipments too large for parcel but too small to fill an entire truck.
O
Operating Authority
Legal permission to operate as a for-hire carrier, broker, or freight forwarder — required before accepting payment for interstate transportation services.
Out-of-Service Order
A federal enforcement action that immediately prohibits a carrier, vehicle, or driver from operating until identified safety violations are corrected.
Out-of-Service Rate
The percentage of roadside inspections that result in a vehicle, driver, or carrier being placed out of service due to safety violations.
S
Safety Rating
An official FMCSA assessment of a motor carrier's safety management — rated Satisfactory, Conditional, or Unsatisfactory based on compliance review findings.
Surety Bond
A financial guarantee required by FMCSA that protects shippers and carriers against financial loss from a broker's or freight forwarder's failure to fulfill obligations.
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