Logistics Glossary

Definitions of key logistics, freight, and supply chain terms used across the industry.

3

3PL
Third-Party Logistics provider. A company that manages logistics operations — including warehousing, transportation, and fulfillment — on behalf of shippers. In last-mile delivery, 3PLs coordinate networks of motor carriers to execute deliveries to end customers.

A

Accessorial Charges
Fees added to a base transportation rate for services beyond standard pickup and delivery, such as liftgate use, residential delivery, inside delivery, waiting time, or fuel surcharges. Accessorials can materially change the total cost of a last-mile stop.
Air Ride
A suspension system that uses air bags instead of conventional springs to cushion cargo during transit. Air-ride trailers and trucks are preferred for high-value or fragile freight such as furniture, electronics, and glass because they reduce vibration and shock.
API Integration
A software connection that allows two systems to exchange data programmatically through application programming interfaces. In logistics, API integrations commonly sync orders, tracking events, and proof-of-delivery records between a shipper's systems and a 3PL or carrier platform.

B

Backhaul
A return load carried on the trip back to a carrier's origin or next staging point, reducing empty (deadhead) miles. Backhauls improve asset utilization and can lower the effective cost of outbound deliveries when return freight is available.
Blanket Wrap
A freight handling method in which items — typically furniture or fixtures — are padded with moving blankets and secured in a truck rather than shipped in cartons or crates. Blanket-wrap service requires careful loading and is common in white glove and high-value residential delivery.
BOL
Bill of Lading. A legal document issued by a carrier to a shipper that details the type, quantity, and destination of goods being transported. The BOL serves as a receipt of shipment, a contract of carriage, and a document of title.
Box Truck
A straight truck with an enclosed cargo box mounted to the chassis, commonly used for local and regional deliveries. Box trucks are a workhorse of last-mile big-and-bulky operations because they combine weather protection with easier residential street access than tractor-trailers.

C

Capacity
The available transportation resources — trucks, drivers, and crew — that a carrier can commit to a lane or delivery program at a given time. Capacity constraints drive rate changes and service availability during peak seasons and in tight labor markets.
Cargo Van
An enclosed van used to transport smaller freight, parcels, or compact big-and-bulky items. Cargo vans are valued for fuel efficiency, urban maneuverability, and access to neighborhoods where larger box trucks are impractical.
Carrier
A company or individual that physically transports goods from one location to another using their own vehicles and personnel. In last-mile logistics, carriers typically operate box trucks, flatbeds, or vans to deliver large items to residential and commercial addresses.
COD
Cash on Delivery (or Collect on Delivery). A payment arrangement where the recipient pays for goods at the time of delivery rather than in advance. COD is less common in modern last-mile logistics but still used in certain B2B and specialty delivery scenarios.
Consolidation
The practice of combining multiple shipments destined for the same region or route into fewer vehicle loads. Consolidation improves truck utilization, lowers per-unit transportation cost, and is foundational to LTL networks and multi-stop last-mile routes.
Cross-Docking
A logistics practice where incoming shipments are unloaded from inbound vehicles and loaded directly onto outbound vehicles with minimal or no warehousing in between. Cross-docking reduces storage costs and speeds up delivery by eliminating the put-away and pick steps in a traditional warehouse.

D

Deadhead
The distance a truck travels empty, without carrying any freight. Deadhead miles generate fuel and labor costs without producing revenue, making them a key metric for carrier profitability. Effective route planning and backhaul strategies minimize deadhead.
Delivery Window
The scheduled time range during which a delivery is expected to arrive at the customer. Tight delivery windows improve customer experience but require accurate routing, traffic planning, and proactive exception communication when delays occur.
Dispatch
The process of assigning drivers, vehicles, and stops to routes and communicating those assignments to the field. Effective dispatch balances on-time performance, route density, crew skills, and real-time exceptions such as traffic or customer reschedules.
Dock Appointment
A scheduled time slot for a truck to load or unload at a warehouse or distribution center dock. Appointment systems reduce yard congestion and dwell time but can create cascading delays if carriers miss their assigned windows.
Dock-to-Door
A delivery model covering transport from a warehouse or retail dock to the customer's door or threshold, without room-of-choice placement or installation. Dock-to-door sits between pure line-haul handoff and full white glove service.
Drayage
The short-distance transportation of goods, typically from a port, rail yard, or intermodal terminal to a nearby warehouse or distribution center. Drayage is a critical link in the supply chain for imported goods entering the United States through major port cities.
Drop Trailer
A trailer left at a shipper or receiver location to be loaded or unloaded later, allowing the tractor and driver to leave. Drop-trailer programs improve dock flexibility but require extra trailer inventory and clear yard controls.
Dwell Time
The amount of time a delivery vehicle spends at a stop beyond the expected service time, including waiting for access, customer availability, or loading dock availability. Excessive dwell time reduces the number of deliveries a carrier can complete per shift and increases operating costs.
Dynamic Routing
Route planning that continuously adjusts stop sequences based on real-time conditions such as traffic, new orders, cancellations, or delivery windows. Dynamic routing helps last-mile fleets protect ETAs when conditions change during the day.

E

EIN
Employer Identification Number. A unique nine-digit number assigned by the IRS to businesses for tax identification purposes. Motor carriers need an EIN to register with the FMCSA, open business bank accounts, and file federal tax returns.
ELD
Electronic Logging Device. A federally mandated device that automatically records a commercial driver's hours of service by connecting to the vehicle's engine. ELDs replaced paper logbooks to improve accuracy and prevent hours-of-service violations.
ETD/ETA
Estimated Time of Departure / Estimated Time of Arrival. Operational timestamps used to plan pickups and communicate expected delivery arrival to customers and shippers. Accurate ETAs depend on routing quality, traffic data, and realistic service-time assumptions.

F

Flatbed
A truck or trailer with an open, level deck and no enclosed sides or roof, used for freight that is oversized, irregularly shaped, or loaded by crane or forklift. In local delivery, flatbeds often move building materials, machinery, and other items that do not fit in box trucks.
FMCSA
Federal Motor Carrier Safety Administration. The U.S. government agency within the Department of Transportation responsible for regulating and overseeing the safety of commercial motor vehicles. The FMCSA issues operating authority, maintains safety records, and enforces compliance standards for motor carriers.
Freight Broker
A licensed intermediary that arranges transportation of goods between shippers and carriers without taking physical possession of the freight. Freight brokers must hold broker authority (MC number) from the FMCSA and maintain a $75,000 surety bond.
Freight Class
A classification used in LTL shipping, defined by the National Motor Freight Classification (NMFC), that groups commodities by density, stowability, handling, and liability. Freight class influences LTL rates; it is less central to negotiated per-stop last-mile pricing.
FTL
Full Truckload. A shipping mode where a single shipment occupies an entire truck trailer. FTL shipments travel directly from origin to destination without stops to consolidate or deconsolidate freight, resulting in faster transit times than LTL.

G

Geo-Fencing
A technology that creates a virtual geographic boundary around a physical location, triggering automated actions when a device enters or exits the area. In logistics, geo-fencing is used to automate arrival notifications, track dwell time at delivery locations, and verify that drivers are within their assigned service areas.
Geo-Matching
A technology-driven process that uses geographic data to automatically match carriers with delivery opportunities based on service area overlap. Geo-matching platforms like CarrierLinq use spatial databases to calculate distances between carrier locations and delivery points, enabling instant identification of qualified carriers for any given area.

I

Intermodal
A transportation method that uses two or more modes of transport — such as truck, rail, and ship — to move freight in a standardized container without handling the cargo itself when changing modes. Intermodal shipping combines the cost efficiency of rail with the flexibility of trucking for door-to-door delivery.

L

Last-Mile
The final segment of a delivery journey, from a distribution center or local hub to the end customer's location. Last-mile delivery is typically the most expensive and complex part of the supply chain, accounting for over 50% of total shipping costs due to low route density and high customer-service requirements.
Liftgate
A hydraulic or electric platform mounted on the rear of a truck that raises and lowers freight between the ground and the cargo floor. Liftgates are essential for deliveries to locations without docks, including most residential addresses.
Line Haul
The long-distance transportation of freight between cities or terminals, as distinct from local pickup, delivery, or last-mile service. Line haul often feeds regional warehouses that then hand off goods to final-mile carriers.
LTL
Less Than Truckload. A shipping mode for freight that does not require a full trailer. LTL carriers consolidate shipments from multiple shippers onto a single truck, with each shipper paying only for the space their freight occupies. LTL shipments typically move through a network of terminals.

M

MC Number
Motor Carrier Number. A unique identifier assigned by the FMCSA to carriers and brokers that have been granted operating authority to transport regulated commodities for hire in interstate commerce. The MC number is distinct from the USDOT number and is required for most for-hire carriers.
Middle Mile
The transportation segment between origin facilities and last-mile hubs — for example, moving goods from a regional distribution center to a local delivery station. Middle-mile efficiency strongly influences how quickly inventory becomes available for final delivery.
Moffett
A truck-mounted forklift (often associated with the Moffett brand) that travels on the back of a flatbed or similar vehicle and unloads freight at sites without dock or forklift equipment. Moffett-capable carriers are valuable for job-site and jobsite-adjacent deliveries.
Motor Carrier
A company or individual engaged in the business of transporting goods or passengers by motor vehicle over public highways. Motor carriers must register with the FMCSA, obtain a USDOT number, and comply with federal safety regulations governing vehicle maintenance, driver qualifications, and hours of service.

O

OSD
Over, Short, and Damaged. A report filed when delivered goods do not match the expected quantity or condition. OSD reports document discrepancies between what was shipped and what was received, serving as the basis for freight claims and carrier liability determinations.

P

Pallet
A flat wooden, plastic, or metal platform used to stack, store, and transport goods. Standard pallet dimensions in the United States are 48 by 40 inches. Palletized freight can be moved efficiently with forklifts and pallet jacks, making pallets a fundamental unit of measure in warehousing and transportation.
Pallet Jack
A manual or powered tool used to lift and move palletized freight over short distances inside warehouses, trucks, or delivery sites. Pallet jacks are standard equipment for carriers handling palletized appliances, furniture, and retail replenishment.
Per-Stop Rate
A pricing model that pays a carrier a set amount for each delivery stop rather than by mile or by hour. Per-stop rates are common in last-mile contracts and must be calibrated against average drive time, service time, and accessorial complexity.
POD
Proof of Delivery. Documentation confirming that a shipment was delivered to the intended recipient. Modern POD typically includes an electronic signature, timestamped photographs of the delivered item in place, and GPS coordinates of the delivery location.
Proof of Delivery (Digital)
Electronic confirmation of a completed delivery, often including e-signature, photos, timestamps, and GPS coordinates captured through a mobile app. Digital POD speeds billing, reduces disputes, and gives shippers auditable evidence of service completion.

R

Reefer
A refrigerated truck or trailer equipped with a temperature-control unit to transport perishable goods. Reefer units maintain precise temperature ranges during transit, and drivers must monitor and document temperatures throughout the journey to ensure product integrity.
Reverse Logistics
The process of moving goods from the customer back through the supply chain for returns, exchanges, repairs, recycling, or disposal. In last-mile programs, reverse logistics often includes pickup of refused freight, packaging removal, and return-to-vendor handling.
Route Density
A measure of how closely delivery stops are clustered on a route, often expressed as stops per mile or stops per hour. Higher route density lowers cost per delivery and is a primary reason urban and suburban programs outperform sparse rural routes.

S

Service Area
The geographic region within which a carrier operates and accepts delivery assignments. Service areas are typically defined by a base location (ZIP code) and a radius in miles. Carriers may have multiple service areas if they operate from more than one base location.
Shipper
The party that originates a shipment of goods — typically a manufacturer, retailer, or distributor. In last-mile logistics, shippers contract with 3PLs or directly with carriers to deliver products to end customers. The shipper is responsible for packaging, labeling, and preparing goods for transport.
SLA
Service Level Agreement. A contractual definition of expected performance — such as on-time delivery percentage, damage rate, or response time — and the remedies if targets are missed. SLAs align 3PLs, carriers, and shippers on measurable operating standards.
Sprinter Van
A popular class of high-roof cargo van (commonly associated with Mercedes-Benz Sprinter and similar models) used for parcel and mid-size last-mile deliveries. Sprinter vans offer more cargo volume than compact vans while remaining easier to navigate in dense neighborhoods than box trucks.
STB
Surface Transportation Board. An independent federal agency that regulates certain aspects of railroad and intercity bus transportation, including rate disputes, service complaints, and railroad mergers. The STB's jurisdiction is narrower than the FMCSA's and primarily affects rail-based freight movements.
Stop Count
The number of delivery or pickup locations completed on a route or during a shift. Stop count is a core productivity metric for last-mile carriers and directly influences per-stop profitability when paired with rate and service-time data.
Surge Pricing
Temporary rate increases applied when demand for delivery capacity exceeds available supply, such as during holiday peaks or severe weather. Surge pricing helps secure carrier coverage but should be governed by clear contract terms to avoid disputes.

T

Tariff
A published schedule of rates, rules, and charges that a carrier applies to the transportation of goods. In the context of domestic freight, a tariff defines the pricing structure for different service types, weight brackets, and accessorial charges. Tariffs may be negotiated individually or published as standard rate schedules.
Threshold Delivery
A delivery service level where the carrier transports an item to the customer's first dry area — typically the front door, garage, or building lobby — without entering the home or performing any setup. Threshold delivery is the most basic last-mile service tier and is commonly used for furniture, mattresses, and boxed appliances.
TMS
Transportation Management System. Software used by shippers, 3PLs, and carriers to plan, execute, and optimize the movement of goods. A TMS typically handles route planning, carrier selection, shipment tracking, freight audit, and performance analytics.
TMS Integration
The technical connection between a transportation management system and other tools such as order management, warehouse systems, carrier portals, or matching platforms. Strong TMS integration reduces manual entry and improves shipment visibility across partners.
Truckload
A shipping mode where a shipper's freight fills an entire truck trailer, which travels directly from origin to destination. Truckload shipping offers faster transit times and lower damage risk compared to LTL because the freight is not handled at intermediate terminals.
Two-Person Delivery
A service configuration in which two crew members perform the delivery, enabling safe handling of heavy or bulky items and supporting white glove placement. Two-person teams are standard for appliances, large furniture, and many residential installation jobs.

U

USDOT
A unique identification number issued by the U.S. Department of Transportation to companies that operate commercial motor vehicles in interstate commerce. The USDOT number is used to track a carrier's safety record, inspection results, crash history, and compliance reviews in the FMCSA's databases.

W

Warehouse
A facility used for storing goods before they are distributed to retail locations or delivered to end customers. In last-mile logistics, warehouses serve as the staging point where items are received from manufacturers, sorted by delivery route, and loaded onto local delivery vehicles.
White Glove
A premium delivery service that includes room-of-choice placement, unpacking, assembly (if required), and removal of all packaging materials. White glove delivery is the standard for high-value furniture, appliances, and electronics where the customer expects a complete, hands-free experience.

Z

Zero-Emission Vehicle (ZEV)
A vehicle that produces no tailpipe emissions, such as a battery-electric truck or van. ZEV adoption is accelerating in last-mile fleets due to urban air-quality rules, corporate sustainability goals, and regulations such as California's Advanced Clean Fleets requirements.
Zone Skipping
A shipping strategy where a shipper consolidates packages destined for the same geographic region into a single truckload, transporting them to a local distribution point near the destination before injecting them into the final-mile delivery network. Zone skipping reduces per-package shipping costs by bypassing intermediate sorting facilities in the parcel carrier's network.

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