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.

B

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.

C

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.
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.
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.
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.

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.

F

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.
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.
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.
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.
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.

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.

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.
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.

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.
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.

U

USDOT
United States Department of Transportation number. A unique identifier assigned to every company that operates 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

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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