This Terms Index (Glossary) section helps you Improving understanding of technical or regulatory terms used throughout the website or industry; Clarifying abbreviations and jargon, especially for new drivers, small fleet owners, or those unfamiliar with trucking regulations; Enhancing user experience by offering a quick-reference guide, saving time spent searching elsewhere; Supporting compliance and education, making it easier to interpret FMCSA rules, licensing requirements, insurance terms, and more.

Terms Index (Glossary)
This section provides clear, concise definitions of key terms, abbreviations, and industry-specific language used in trucking, logistics, and compliance. It’s designed to help drivers, carriers, and business owners quickly understand important concepts and stay informed.


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A
ATA – American Trucking Associations

The American Trucking Associations (ATA) is the largest national trade association for the trucking industry in the United States. Founded in 1933, ATA represents a broad range of businesses, including motor carriers, fleets, suppliers, and logistics companies. Its primary mission is to advocate for policies that improve safety, efficiency, and sustainability within the trucking industry.

ATA plays a key role in influencing public policy, offering training and resources to its members, and conducting research to support the industry. It also organizes industry events like the annual ATA Management Conference & Exhibition, providing networking and educational opportunities for trucking professionals. The association focuses on issues such as safety regulations, infrastructure development, workforce training, and environmental sustainability.


C
CDL – Commercial Driver’s License

A Commercial Driver’s License (CDL) is a specialized driver’s license required to operate large, heavy, or hazardous material-carrying vehicles in the United States. It is issued by individual states but must meet federal standards set by the Federal Motor Carrier Safety Administration (FMCSA).

CDLs are divided into three main classes based on the Gross Vehicle Weight Rating (GVWR) and the type of vehicle:

Class A:

  • For operating any combination of vehicles with a GVWR of 26,001 lbs or more, provided the towed vehicle exceeds 10,000 lbs.
  • Example: Tractor-trailers, truck and trailer combos, flatbeds, and livestock carriers.

Class B:

  • For single vehicles with a GVWR of 26,001 lbs or more, or any such vehicle towing a trailer that does not exceed 10,000 lbs.
  • Example: Straight trucks, large buses (e.g., school buses), dump trucks.

Class C:

  • For vehicles that do not meet Class A or B requirements, but are:
    • Designed to transport 16+ passengers, including the driver
    • Carrying hazardous materials (requiring placards)
  • Example: Passenger vans, small HAZMAT trucks.

CDL Endorsements

CDL Endorsements: CDL holders may need endorsements to operate specific types of vehicles or carry certain cargo. These are added after passing additional tests:

  • H – Hazardous Materials (HAZMAT)
  • N – Tank Vehicles
  • P – Passenger Transport
  • S – School Bus
  • T – Double/Triple Trailers
  • X – Tank and HAZMAT Combined

Clearinghouse (FMCSA Drug and Alcohol)

The FMCSA Drug and Alcohol Clearinghouse is a secure online database that tracks the drug and alcohol violations of commercial drivers (CDL holders) and ensures compliance with FMCSA regulations. This system is designed to improve safety on the roads by ensuring that drivers who fail or refuse drug and alcohol tests are held accountable and do not continue operating commercial vehicles until they are in compliance.


Employers, drivers, and other relevant parties must create an account on the FMCSA Clearinghouse website. They need to provide some personal information and credentials to access the system.


Query Process:

  • Employers must use the system to conduct pre-employment queries for drivers and also conduct annual queries for current drivers.

Reporting Violations:

  • If a driver violates drug and alcohol policies, the employer must report the violation in the Clearinghouse within three business days.


CSA – Compliance, Safety, Accountability

CSA stands for Compliance, Safety, Accountability. It is a program run by the Federal Motor Carrier Safety Administration (FMCSA) aimed at improving the safety of commercial vehicles and drivers. The CSA program monitors and enforces safety regulations for trucking companies and drivers.


Compliance in the trucking industry refers to the act of following all laws, regulations, and industry standards set by government agencies such as the FMCSA, DOT, and state authorities. It ensures that carriers, drivers, and businesses operate safely, legally, and efficiently.


Key Areas of Compliance:

  • Driver Qualifications: Having a valid CDL, medical certificate, clean driving record, and proper endorsements.
  • Hours of Service (HOS): Tracking driving time accurately (often via ELDs) to prevent fatigue-related accidents.
  • Vehicle Maintenance: Regular inspections, repairs, and documentation to ensure roadworthiness.
  • Drug & Alcohol Testing: Pre-employment, random, and post-accident testing as required by FMCSA.
  • Insurance Requirements: Meeting federal and state minimums for liability and cargo coverage.
  • Permits & Licensing: Maintaining DOT numbers, MC authority, IFTA, IRP, and other necessary registrations.
  • Recordkeeping: Retaining logs, inspection reports, maintenance records, and employee documentation for audit readiness.

CVSA – Commercial Vehicle Safety Alliance

The Commercial Vehicle Safety Alliance (CVSA) is a non-profit organization that brings together federal, state, provincial, and territorial commercial motor vehicle safety officials from the United States, Canada, and Mexico. Founded in 1986, CVSA’s primary mission is to promote and enhance the safety of commercial motor vehicles (CMVs) and their drivers.

CVSA develops and implements uniform safety standards and regulations, provides training and resources for safety enforcement personnel, and advocates for policies that improve transportation safety across North America. The organization is known for its role in coordinating large-scale safety initiatives, such as Roadcheck, an annual inspection event where thousands of commercial vehicles are inspected across the continent.

CVSA also focuses on reducing crashes, injuries, and fatalities involving large trucks and buses by working on regulatory issues, enforcement practices, and safety initiatives.


D
Detention Fee

Detention fee is compensation when a driver is stuck waiting at a shipper or receiver for loading/unloading beyond the agreed free time (usually 2-4 hours).

  • Typical free time: 2-4 hours
  • Charge starts after: Free time ends
  • Rate: ~$25–$100/hour (varies by contract)
  • Why it matters: Delays mess up scheduling, Hours of Service (HOS), and reduce driver earnings

DOT’ – State Departments of Transportation

State Departments of Transportation (DOTs)

  • Role: Each state has its own DOT that regulates interstate and intrastate transportation within that state.
  • Regulations: State DOTs enforce vehicle weight limits, manage road safety, issue local permits, and oversee the registration of vehicles.

DOT (USDOT) Number – (United States) Department of Transportation Number

The DOT number (Department of Transportation number) and USDOT number (United States Department of Transportation number) refer to the same unique identifier issued by the Federal Motor Carrier Safety Administration (FMCSA). It is a number that identifies a motor carrier operating in interstate commerce in the United States and is used to track the safety performance, registration, and regulatory compliance of commercial vehicles.


USDOT Number

  • Issued by: The FMCSA, a division of the U.S. Department of Transportation.
  • Purpose: The USDOT number is required for all companies that operate vehicles involved in interstate commerce, regardless of whether they are involved in transporting goods or passengers.
  • Required for: Businesses that transport passengers or property in commerce across state lines, or that transport hazardous materials.
  • Tracking and Compliance: It helps the government track safety records, regulatory compliance, and ensure safe operations of motor carriers.

DOT Number

  • This is simply another term for the USDOT number and is often used interchangeably.

Key Points:

  • A USDOT number is required for vehicles that are:

    • Engaged in interstate commerce.
    • Have a gross vehicle weight rating (GVWR) of 10,001 pounds or more.
    • Transport 8 or more passengers for compensation, or 15 or more passengers without compensation.
    • Transport hazardous materials requiring placarding.
  • How to Obtain: A carrier must apply for a USDOT number through the FMCSA's online registration system. This number is used to track the company’s safety and regulatory compliance.

The USDOT number plays a crucial role in identifying and monitoring carriers for safety violations, inspections, and enforcement activities.


Drug Test

A drug test for commercial drivers is an essential part of maintaining safety on the road and ensuring that drivers are fit to operate commercial vehicles. The FMCSA (Federal Motor Carrier Safety Administration) requires drug and alcohol testing for all drivers holding a Commercial Driver's License (CDL) who operate commercial vehicles.


The FMCSA requires drug testing at various points in a CDL driver’s career:

Pre-Employment Testing:

  • Drivers must undergo a drug test before they begin working for a new employer in a safety-sensitive position, such as operating a commercial vehicle.
  • This test must be completed before the driver starts driving.

Random Testing:

  • CDL drivers are subject to random drug tests throughout the year. The tests are unannounced and can occur at any time during the workday.
  • Employers are required to randomly test a certain percentage of their drivers based on the size of their fleet (usually 50% for drugs, 10% for alcohol annually).

Post-Accident Testing:

  • If a driver is involved in an accident, they must undergo drug testing immediately if the accident results in a fatality, injuries requiring medical attention, or if a citation is issued to the driver.

Reasonable Suspicion Testing:

  • If a driver is suspected of being under the influence of drugs or alcohol during their shift, they may be required to take a drug test. This is based on an observation of their behavior or appearance.

Return-to-Duty Testing:

  • If a driver tests positive for drugs or alcohol or violates any drug and alcohol regulations, they must undergo a return-to-duty drug test before they can resume driving.

Follow-Up Testing:

  • After a driver returns to duty following a violation of drug and alcohol policies, they are subject to follow-up testing as part of a rehabilitation process. The follow-up tests can be scheduled randomly, and the driver may be required to undergo several tests over a 12-month period.


E
E-Verify (Employment Eligibility Verification)

E-Verify is an online system operated by the U.S. Department of Homeland Security (DHS) in partnership with the Social Security Administration (SSA). It checks the information provided on a worker’s Form I-9 (Employment Eligibility Verification) against government records to verify legal work authorization.


Who Uses E-Verify?

  • Federal contractors (mandatory in many cases)
  • State agencies (depending on state law)
  • Private employers (voluntary but growing use)
  • Employers in states like Arizona, South Carolina, Georgia, etc., where E-Verify use is required or incentivized

Where To Find USCIS Form I-9

You can find Form I-9 and instructions here: https://www.uscis.gov/i-9


EIN – Employer Identification Number

An EIN (Employer Identification Number), also known as a Federal Tax Identification Number (TIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. It functions similarly to a Social Security Number (SSN) but is used for businesses rather than individuals.

Purpose:

  • The EIN is primarily used by the IRS to track a business’s tax obligations, such as income taxes, payroll taxes, and other business-related taxes.
  • It is required for businesses to file taxes, open business bank accounts, apply for licenses and permits, and hire employees.

Who Needs an EIN:

  • Businesses with employees: Any business that hires employees must have an EIN to properly report employment taxes.
  • Corporations and LLCs: All corporations (C-corporations and S-corporations) and limited liability companies (LLCs) generally need an EIN, even if they don’t have employees.
  • Self-employed individuals: Certain sole proprietors may need an EIN if they have specific tax filing requirements or choose to create a business entity like an LLC.
  • Nonprofits: Nonprofit organizations must have an EIN to apply for tax-exempt status and to file required tax returns.
  • Estates and Trusts: Estates, trusts, and other entities (such as certain partnerships) also require an EIN for tax purposes.

ELD – Electronic Logging Device

An ELD, or Electronic Logging Device, is a digital tool used in commercial vehicles to automatically record a driver's Hours of Service (HOS). These devices are mandated by the Federal Motor Carrier Safety Administration (FMCSA) for most commercial truck and bus drivers in the U.S. to improve road safety and ensure compliance with federal regulations regarding driving time limits.


EPA – Environmental Protection Agency

EPA (Environmental Protection Agency)

  • Role: Regulates emissions and environmental standards for commercial vehicles.
  • Regulations: Sets emissions limits for diesel engines, regulates air quality, and mandates the use of cleaner technologies in transportation.

F
Factoring

Factoring for trucking companies is a financial service that helps carriers and owner-operators get paid faster by selling their unpaid freight invoices to a third party—called a factoring company—for immediate cash.


How It Works:

  • You haul a load and deliver it to the customer (broker or shipper).
  • You send the invoice and proof of delivery (POD) to the factoring company.
  • The factoring company pays you—usually 80% to 95% of the invoice—within 24 to 48 hours.
  • The factoring company collects payment from your customer when it's due (typically 30–60 days later).
  • After receiving the full payment, they send you the remaining balance, minus a factoring fee (usually 1% to 5%).

Benefits:

  • Fast cash flow for fuel, repairs, and payroll.
  • No need to wait 30–60 days to get paid.
  • Credit checks on brokers and shippers are often included.
  • Helps new carriers operate without large cash reserves.

Things to Consider:

Factoring fees vary by company and volume.

Recourse vs. Non-recourse:

→ Recourse: You’re responsible if the customer doesn’t pay.

→ Non-recourse: The factoring company assumes the risk of nonpayment (higher fees).

May require contracts or minimum monthly volume.


FMCSA – Federal Motor Carrier Safety Administration

The Federal Motor Carrier Safety Administration (FMCSA) is an agency of the U.S. Department of Transportation (DOT) responsible for regulating and ensuring the safety of commercial motor vehicles (CMVs) in the United States. Established in 2000, FMCSA’s primary mission is to reduce crashes, injuries, and fatalities involving large trucks and buses.

FMCSA sets and enforces safety regulations for motor carriers, drivers, and vehicles, focusing on areas such as driver qualifications, vehicle maintenance, hours of service (HOS), and hazardous materials transportation. The agency also oversees programs like the Compliance, Safety, Accountability (CSA) initiative, which evaluates the safety performance of carriers and drivers.

Additionally, FMCSA provides grants, training, and resources to states and enforcement agencies to improve motor carrier safety, and it works to raise awareness about road safety issues involving commercial vehicles. Through these efforts, FMCSA aims to improve public safety and ensure the efficient movement of freight across the country.


Form 1099 (Form 1099-NEC)

Form 1099 is a tax document used in the United States to report various types of income other than wages, salaries, and tips. It’s commonly used to report non-employee compensation, such as payments to independent contractors, freelancers, or owner-operators in the trucking industry.


Key Points About Form 1099:

  • Issued by: Businesses or individuals who pay $600 or more to a non-employee during the tax year.
  • Received by: Independent workers (like leased owner-operators or freelance dispatchers).
  • Filed with: The IRS, and a copy is sent to the payee for use in filing their personal/business tax return.
  • Common version: Form 1099-NEC (Nonemployee Compensation) — most relevant for trucking contractors.

In Trucking:

If you're a trucking company that hires owner-operators, or you're an owner-operator yourself, Form 1099-NEC is used to report the income paid for hauling loads if you're not treated as a W-2 employee.


Form 2290 – The Heavy Vehicle Use Tax (HVUT)

IRS Form 2290 is the Heavy Vehicle Use Tax (HVUT) Return form used by owners of heavy-duty trucks to report and pay the Heavy Vehicle Use Tax (HVUT) for vehicles with a gross weight of 55,000 lbs or more. This tax is levied annually and is essential for vehicles that operate on public highways.


You can file IRS Form 2290 online:

  • The IRS encourages electronic filing for faster processing and quicker receipt of your stamped Schedule 1.
  • You can e-file Form 2290 through an IRS-authorized e-file provider. Many third-party services offer online filing for a fee. Popular e-filing providers include:
    • Trucking software providers (e.g., eFile2290, ExpressTruckTax, Tax2290).
    • IRS-approved e-file providers (listed on the IRS website).

Form BOC-3 (or Designation of Agents for Service of Process)

A BOC-3 (or Designation of Agents for Service of Process) is a form required by the Federal Motor Carrier Safety Administration (FMCSA) for motor carriers, brokers, and freight forwarders operating in the United States. It designates a legal agent in each state where the company operates to receive legal documents and official communications on behalf of the business.


Key Points About BOC-3:

  1. Purpose:

    • The BOC-3 form is a legal requirement for motor carriers, freight brokers, and freight forwarders. It ensures that the business has a designated agent in every state it operates who can be served with legal papers (e.g., lawsuits, subpoenas).

  2. Who Needs a BOC-3?:

    • Any motor carrier, broker, or freight forwarder that is required to register with the FMCSA and operates in interstate commerce needs to file a BOC-3 form.

  3. Designation of Process Agents:

    • The BOC-3 form requires businesses to appoint a process agent (a legal representative) in each state. This agent will accept legal documents on behalf of the business if they are involved in any legal proceedings.

  4. Filing Process:

    • The form is filed through a FMCSA-approved processing agent (a company that specializes in submitting these forms), who then submits it to the FMCSA.

  5. Statewide Coverage:

    • The BOC-3 ensures that businesses comply with regulations for every state in which they operate, making sure there is a process agent available to handle service of process in all relevant jurisdictions.

  6. Cost:

    • The cost of filing a BOC-3 can vary, but it typically involves a fee paid to the filing agency or service provider (often between $25-$50).

  7. Why It’s Important:

    • It is a legal requirement for companies that engage in interstate commerce and fail to file a BOC-3 can face penalties or be prohibited from operating.

    • It provides an essential mechanism for legal communication, ensuring that businesses can be properly served if they are involved in lawsuits or legal actions.


The BOC-3 form is a crucial part of maintaining legal and regulatory compliance for motor carriers, brokers, and freight forwarders operating across state lines. It ensures that there is always a designated agent in each state who can handle legal matters on behalf of the business.


Form W-2 (Wage and Tax Statement)

Form W-2, also known as the Wage and Tax Statement, is a tax form that U.S. employers use to report wages paid and taxes withheld from employees to the IRS and the employee.


Key Points About Form W-2:

  • Issued by: Employers to their employees each year (typically by January 31).
  • Received by: Employees who work on a W-2 basis (not independent contractors).
  • Includes:
    • Total wages, tips, and other compensation
    • Federal, state, and local income taxes withheld
    • Social Security and Medicare contributions

In Trucking:

If you're a company driver, not an independent contractor, you'll receive a W-2 from your employer. This form shows your annual earnings and withholdings and is used to file your income tax return.


Fuel Surcharge

fuel surcharge is an extra fee added to freight rates to help cover the fluctuating cost of diesel fuel. It helps trucking companies and independent drivers offset the high cost of fuel when prices rise above a set base level.


G
GVWR – Gross Vehicle Weight Rating

GVWR stands for Gross Vehicle Weight Rating. It is a key specification used in the transportation and trucking industry to indicate the maximum weight a vehicle is designed to safely carry, including its own weight (curb weight), cargo, passengers, and any additional equipment.

Vehicles are often classified into categories based on their GVWR, which helps to determine the specific regulations that apply to them, such as licensing, insurance, and maintenance requirements.

  • Light-duty vehicles: Typically have a GVWR of 10,000 pounds or less. Examples include most passenger cars, SUVs, and light trucks.
  • Medium-duty vehicles: Have a GVWR between 10,001 pounds and 26,000 pounds. These include larger trucks like delivery vans and smaller box trucks.
  • Heavy-duty vehicles: Have a GVWR of 26,001 pounds or more. This category includes commercial trucks like tractor-trailers and large dump trucks.

H
HVUT – Heavy Vehicle Use Tax (or Heavy Duty Tax)

Heavy Duty Tax, often referred to as the Heavy Vehicle Use Tax (HVUT), is an annual tax imposed on heavy vehicles that operate on public highways in the United States. This tax is paid to the Internal Revenue Service (IRS) and applies to trucks, trailers, and other heavy vehicles over a certain weight threshold.


Key Facts About the Heavy Duty Tax (HVUT):

  • Who Pays: The tax is typically paid by owners of heavy vehicles used on public highways.
  • Tax Rate: The tax rate varies based on the weight of the vehicle and the model year. For example:
    • Vehicles weighing between 55,000 and 75,000 lbs have a base rate of $100.
    • Vehicles that exceed 75,000 lbs are taxed at $550 or higher, depending on the weight.
  • Due Date: The HVUT is due annually, and the tax year is based on the vehicle’s registration. For most vehicles, it must be paid by August 31 of each year.

How the Tax Is Calculated:

The tax amount depends on the gross weight of the vehicle, including the weight of the truck, trailer, and any additional load.

Exemptions: Some vehicles, such as those used exclusively for agriculture, may be exempt or eligible for a reduced tax rate.


For owner-operators and companies with heavy-duty trucks (e.g., Class 8 trucks), the HVUT is a required cost of doing business. Failure to pay the tax can lead to penalties or an inability to legally operate the vehicle.


Filing: The tax is reported on IRS Form 2290, which must be filed annually for vehicles that weigh 55,000 lbs or more.


I
IFTA – International Fuel Tax Agreement

The International Fuel Tax Agreement (IFTA) is an agreement among U.S. states and Canadian provinces that simplifies the reporting and payment of fuel taxes for commercial vehicles operating in multiple jurisdictions. Established in 1983, IFTA allows truckers and motor carriers to file a single fuel tax report to cover all the states and provinces they travel through, rather than having to file separate reports in each jurisdiction.

Under IFTA, motor carriers are required to maintain records of fuel purchases and miles driven in each jurisdiction. At the end of each quarter, carriers file a tax return that accounts for fuel usage and the corresponding taxes owed for each state or province traveled. This system streamlines the process, reducing the administrative burden for trucking companies and ensuring that fuel taxes are paid to the appropriate jurisdictions.

IFTA applies to vehicles that meet specific criteria, such as those with a gross vehicle weight of 26,000 pounds or more, or those designed to transport more than 15 passengers. The agreement helps to ensure fair distribution of fuel tax revenue among states and provinces and promotes efficient and consistent fuel tax collection across North America.

Insurance (Commercial Auto Insurance)

Commercial auto insurance is a type of insurance designed to cover vehicles used for business purposes. This coverage is essential for businesses that own, lease, or operate vehicles as part of their daily operations, whether it's for transporting goods, employees, or providing services.

Here’s a breakdown of commercial auto insurance:

Key Components of Commercial Auto Insurance:

  1. Liability Coverage:

    • Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if your driver causes an accident that injures someone else.
    • Property Damage Liability: Pays for damage to someone else's property caused by your vehicle, such as a car, fence, or building.
  1. Collision Coverage:

    • Covers damage to your own vehicle caused by a collision with another vehicle or object, regardless of fault.

  2. Comprehensive Coverage:

    • Pays for damage to your vehicle not caused by a collision, such as theft, vandalism, natural disasters, or hitting an animal.

  3. Uninsured/Underinsured Motorist Coverage:

    • Protects you if you're involved in an accident with a driver who doesn't have enough insurance to cover the damages, or no insurance at all.

  4. Medical Payments Coverage:

    • Covers medical expenses for you and your passengers, regardless of who is at fault in the accident.

  5. Cargo Insurance:

    • For businesses that transport goods, cargo insurance provides coverage in case of loss or damage to the goods being transported.

  6. Hired and Non-Owned Auto Insurance:

    • Provides coverage for vehicles your business rents or uses on a temporary basis, or for employees who drive their own cars for business purposes.

Who Needs Commercial Auto Insurance?

  • Business owners who use vehicles to carry out operations, such as transporting goods, people, or equipment.
  • Fleet operators with multiple vehicles that are used for business.
  • Independent contractors (e.g., delivery drivers or truck drivers) who use their personal vehicles for business.
  • Contractors who use vehicles to transport tools and materials to job sites.

Why It’s Important:

  • Legal Requirement: Most states require businesses to have commercial auto insurance, especially if they have company-owned vehicles or vehicles used for business.
  • Protection: It safeguards businesses from financial losses due to accidents, property damage, theft, and liability claims.
  • Peace of Mind: It ensures that if an accident occurs, the business can cover repair costs, medical expenses, and legal fees, minimizing potential disruptions to business operations.

Factors Influencing Cost:

  • Type and number of vehicles
  • The nature of the business (e.g., trucking, delivery services)
  • Driver experience and history
  • Coverage limits and deductibles
  • Vehicle usage (e.g., local, interstate)
  • The value of the vehicle and its parts

In conclusion, commercial auto insurance is vital for businesses that use vehicles for operational purposes, providing essential coverage for a wide range of risks. It ensures businesses comply with regulations, protects their assets, and shields them from significant financial losses in the event of an accident or damage.

IRP – International Registration Plan

IRP allows trucks to operate in multiple states and provinces under a single registration. The International Registration Plan (IRP) is a reciprocal agreement among U.S. states, the District of Columbia, and Canadian provinces. It allows commercial motor carriers to register vehicles in one base state and legally operate in multiple jurisdictions (states/provinces) while distributing registration fees proportionally based on the distance traveled in each area.


Who Needs IRP?

You must register under the IRP if you operate a qualifying commercial vehicle across state or provincial lines and your vehicle meets any of the following criteria:

  • It is used for transporting people or property for hire or profit.
  • It has a gross vehicle weight (GVW) over 26,000 lbs (11,793 kg).
  • It has three or more axles, regardless of weight.
  • It is used in a combination (like a tractor-trailer) where the total weight exceeds 26,000 lbs.
  • You cross state/province borders in the U.S. or Canada.

Note: If you operate only within one state (intrastate), you typically don’t need IRP.


L
Layover Fee

Layover fee is a daily fee charged when a driver has to wait overnight because a load isn’t ready, canceled, or rescheduled, and they can't get another load that day.

  • Rate: ~$150–$300/day (varies)
  • Why it's charged: The day is essentially lost income, so the driver needs to be compensated.

Example: You show up for a pickup on Friday, but the freight isn’t ready until Saturday. You’re stuck at a truck stop or hotel waiting—this qualifies for a layover.

Load Board

A load board is an online platform or marketplace where freight carriers (trucking companies and independent truckers) and shippers (businesses or individuals needing freight transportation) can connect to arrange the transportation of goods. These platforms are a crucial part of the logistics and trucking industry, providing an efficient way for shippers to find carriers and for carriers to find loads to haul.


  • Load Listings:

    • Shippers post available loads on load boards, which include details like the type of freight, destination, pickup and delivery times, weight, dimensions, and payment rates.
    • Trucking companies or independent drivers can search through these listings to find suitable loads that match their capacity, equipment, and desired routes.
  • Carrier Listings:

    • Trucking companies and independent drivers also have the option to post their availability and equipment on load boards, making it easier for shippers to find carriers for their transportation needs.
    • Listings typically include the carrier's vehicle types (e.g., flatbed, dry van, reefer), capacity, and contact information.

  • Free Load Boards:

    • These platforms allow shippers and carriers to post and search for loads without paying any fees. However, the number of features may be limited compared to paid platforms.
    • Examples: TruckStop (free trial), UShip (for small loads), LoadUp.
  • Paid Load Boards:
    • Paid platforms often offer more advanced features, such as more detailed search options, better load visibility, and additional services like invoicing, payment protection, and brokered loads.
    • Examples: DAT Load Board, TruckStop.com, Trucker Path, 123Loadboard.
  • Dedicated or Niche Load Boards:

    • Some load boards specialize in specific types of freight, vehicles, or routes. For example, there are load boards for reefer trucks (temperature-controlled freight), flatbeds, LTL (less-than-truckload) shipments, or even international shipments.
    • Examples: Reefer Load Board, Hot Shot Load Board, Freight Finder.
  • Mobile Load Boards:

    • Many load boards offer mobile apps, allowing truck drivers to search for loads on the go. This feature is especially valuable for owner-operators and independent drivers who are on the road and need to find new loads quickly.
    • Examples: Trucker Path, Convoy, Uber Freight.

LTL Load – Less Than Truckload

An LTL load (short for Less Than Truckload freight) refers to a shipping method used when the amount of freight is too small to fill an entire truck. Instead of one shipper renting the full trailer (as in FTL – Full Truckload), multiple shippers share space on the same truck.


M
MC Number – Motor Carrier Number

An MC number (Motor Carrier number) is a unique identifier issued by the Federal Motor Carrier Safety Administration (FMCSA) to motor carriers operating in interstate commerce in the United States. This number is required for any company that engages in the transportation of goods or passengers across state lines for hire.

The MC number is part of the FMCSA’s efforts to ensure safety and regulatory compliance in the transportation industry. It is often associated with the company's DOT number (Department of Transportation number), though they serve different purposes:

  • MC Number: Primarily for companies that are engaged in interstate operations, transporting goods or passengers for compensation.

  • DOT Number: Required for vehicles that are involved in interstate commerce, even if they are not for hire.

Motor carriers must apply for an MC number through the FMCSA, providing details about their business operations, including types of services (such as freight, passenger transport, or hazardous materials) and the vehicles they operate.

Once granted, the MC number is used to track the carrier's safety record, compliance with regulations, and to identify the company in official reports, inspections, and enforcement actions. It is a critical component for legal operation within the commercial transportation sector.

Medical Exam (CDL)

Commercial Driver Medical Exam

The FMCSA requires that commercial drivers (those with a CDL or operating vehicles with a gross weight of 10,001 lbs or more) pass a medical examination to ensure they meet the health standards necessary to safely drive a commercial vehicle.


Who Needs the Medical Exam?

  • All CDL drivers (Class A, B, and C) must pass the medical exam to ensure they can safely operate a commercial vehicle.
  • Drivers of vehicles weighing 10,001 lbs or more that carry hazardous materials or passengers.
  • The medical exam is required for both intrastate (within a single state) and interstate (across state lines) commercial vehicle operators.

What Does the Medical Exam Include?

Physical Examination:

  • Vision: The driver must have at least 20/40 vision in both eyes, with or without corrective lenses. Additionally, they must have a vision in at least one eye.
  • Hearing: The driver must be able to hear a forced whisper at a distance of 5 feet.
  • Blood Pressure: Blood pressure must be within acceptable limits (typically below 140/90).
  • Urinalysis: Tests for underlying medical conditions like diabetes or kidney disease.
Medical History:
  • Review of previous medical conditions, including heart disease, epilepsy, diabetes, and other chronic illnesses.

Physical Fitness:

  • Assessment of the driver’s overall physical fitness to ensure they are capable of safely operating the vehicle for long hours.

Mental Health:

  • Examining any potential mental health conditions (e.g., depression, anxiety, or substance abuse) that could impair driving.

Drivers must pass the medical exam every two years (24 months).

N
NHTSA – National Highway Traffic Safety Administration

NHTSA (National Highway Traffic Safety Administration)

  • Role: Oversees vehicle safety standards and conducts vehicle recalls.
  • Regulations: Develops and enforces regulations for vehicle performance, safety equipment (e.g., airbags, seatbelts), and crash investigations.

O
OSHA – Occupational Safety and Health Administration

OSHA (Occupational Safety and Health Administration)

  • Role: Ensures workplace safety in the trucking industry.
  • Regulations: Oversees safety procedures, including loading and unloading, and enforces the protection of workers from accidents and injuries.

P
Permit (Trip | Fuel | Oversize | Special)

Common State Permits You Might Need

Permit TypeDescriptionWhen You Need It
Trip PermitTemporary authorization to enter a state without IRP (International Registration Plan)If you don’t have IRP/apportioned plates for that state
Fuel PermitTemporary fuel tax permit (instead of IFTA)If you're not registered with IFTA but enter an IFTA state
Oversize/Overweight PermitFor loads exceeding legal size or weightAnytime your load exceeds legal dimensions/weights
Special State PermitsSome states have unique requirements (KYU, NY HUT, NM, OR)Required for specific vehicle types/weights

Key States with Special Permit Requirements

Here are four common states with mandatory special permits (even with IRP/IFTA):

StatePermitWho Needs It
KentuckyKYU NumberRequired for vehicles over 59,999 lbs GVW
New YorkHUT (Highway Use Tax)Required for trucks over 18,000 lbs GVW
New MexicoWeight Distance Tax PermitRequired for vehicles over 26,000 lbs
OregonOregon Weight-Mile Tax PermitRequired for vehicles over 26,000 lbs

Common Scenarios

1. You're leased onto a carrier (under their authority)

  • The carrier usually handles permits.
  • But you may need to check if you’re responsible for Oregon or New York HUT depending on the lease terms.

2. You’re an owner-operator with your own authority

  • You’ll likely need:
    • IRP (apportioned plates)
    • IFTA
    • UCR (Unified Carrier Registration)
    • BOC-3
    • State permits (KYU, NY HUT, NM, OR)

Quick Checklist of Permits (if you have your own authority):

PermitRequired For
IRP PlatesTrucks operating interstate
IFTAFuel tax reporting across states
UCRAll interstate carriers
BOC-3Designate legal agents in all states
KYUEntering Kentucky over 59,999 lbs
NY HUTEntering NY over 18,000 lbs
NM PermitEntering NM over 26,000 lbs
OR PermitOperating in Oregon over 26,000 lbs

S
State Permit

A state permit for a trucking company refers to the official authorization required to operate commercial trucks within or across certain U.S. states. These permits are part of regulatory compliance and ensure that a trucking company meets the specific legal, tax, and safety requirements of each state.

What a State Permit Typically Involves:

  1. Intrastate vs. Interstate:
    • Intrastate permit – Needed if you operate only within a single state.
    • Interstate operations – Often require multiple state permits in addition to federal registrations (like a USDOT number or MC number).
  2. Common Types of State Permits:
    • IRP (International Registration Plan) – Allows trucks to operate in multiple states and provinces under a single registration.
    • IFTA (International Fuel Tax Agreement) – Covers fuel tax reporting for carriers operating in more than one jurisdiction.
    • Oversize/Overweight Permits – Required for loads exceeding standard legal limits.
    • Highway Use or Weight-Distance Permits – Required by states like New York, New Mexico, Oregon, and Kentucky.
  3. State-Specific Authority:
    Some states also require state operating authority, similar to federal MC authority, to legally operate commercial vehicles within that state.

T
Truck – Heavy Truck (Heavy-Duty Truck)

A heavy-duty truck is a category of motor vehicles designed for carrying larger, heavier loads and for more demanding commercial purposes. These trucks are typically used in industries such as freight transport, construction, agriculture, and other sectors that require the movement of large quantities of goods or equipment over long distances.

Key Characteristics of Heavy-Duty Trucks:

Weight Classification:

    • Heavy-duty trucks are classified as having a Gross Vehicle Weight Rating (GVWR) of 33,001 pounds or more. This places them in a higher weight class compared to light-duty or medium-duty trucks, allowing them to handle much heavier loads.

Types of Heavy-Duty Trucks:

    • Class 8 Trucks: These are the largest trucks on the road and include vehicles with a GVWR of more than 33,000 pounds. Examples include 18-wheelers or semi-trucks, which are used for long-haul freight.
    • Tractors: These are trucks designed primarily to pull trailers, often seen as part of tractor-trailer combinations.
    • Dump Trucks: Heavier trucks used in construction and mining to carry large amounts of loose material.
    • Flatbed Trucks: These trucks are used for transporting large or heavy loads that may not fit into standard enclosed cargo areas.
    • Concrete Mixers: Used in the construction industry for mixing and delivering concrete.
    • Tow Trucks: Large trucks designed for towing other vehicles or hauling equipment.
    • Heavy-duty Pickup Trucks: Examples like the Ford F-350 or RAM 3500 that are designed for heavy loads, towing, and other robust applications, though they are still smaller than semi-trucks.
Common Uses:
    • Long-haul freight transport: Heavy-duty trucks, especially semi-trucks, are essential for the transportation of goods over long distances across the country and internationally.
    • Construction and industrial purposes: Trucks like dump trucks, cement mixers, and flatbeds are frequently used on construction sites to transport heavy materials like dirt, gravel, and machinery.
    • Agricultural and mining operations: These trucks are also used to transport crops, equipment, and materials for farming, as well as large-scale mining operations.
    • Towing and recovery: Heavy-duty tow trucks are used to move damaged vehicles or large equipment.

Engine Power and Performance:

    • Heavy-duty trucks are equipped with large, powerful engines, often diesel-powered, to provide the necessary torque and power to haul heavy loads. These trucks typically have engines with output ranging from 300 to 600 horsepower or more, depending on the specific needs of the vehicle.

Fuel Efficiency and Environmental Impact:
    • While heavy-duty trucks are necessary for transporting goods and materials, they generally have lower fuel efficiency compared to lighter vehicles due to their larger size, weight, and engine power. This has led to a focus on improving fuel efficiency and reducing emissions through advanced technologies like hybrid engines and alternative fuels (e.g., natural gas or electric options).

Regulations:

    • Heavy-duty trucks are subject to more stringent regulations than lighter trucks, particularly when it comes to safety, emissions, and driving hours. They are also required to undergo regular inspections to ensure they meet safety and environmental standards.

Towing and Load Capacity:

    • Heavy-duty trucks are often used to tow extremely heavy loads, including trailers, containers, and other large equipment. These vehicles have high towing capacities, often exceeding 20,000 pounds for standard pickups and up to 80,000 pounds for fully loaded tractor-trailer rigs.

Examples of Heavy-Duty Trucks:

  • Freightliner Cascadia
  • Kenworth T680
  • Peterbilt 579
  • Mack Anthem
  • International LT Series
  • Ford F-350, RAM 3500 (Heavy-duty pickups)

Importance of Heavy-Duty Trucks:

  • Economic Impact: Heavy-duty trucks are critical for the global supply chain, transporting goods and raw materials across countries and continents. They ensure that industries like manufacturing, retail, agriculture, and construction continue to function smoothly.
  • Infrastructure: These trucks help move large quantities of goods and raw materials that are essential for building infrastructure and supporting other industries.

Conclusion:

Heavy-duty trucks are vital for long-distance transportation, construction, mining, and various industries that require heavy hauling and transportation of goods. Their high towing capacities, robust engine power, and ability to handle significant payloads make them indispensable for commercial and industrial operations. These vehicles play a crucial role in keeping the economy moving and in the successful operation of numerous sectors.

Truck – Light Truck (Light-Duty Truck)

A light-duty truck refers to a category of motor vehicles that are designed for lighter, everyday use, typically for transporting goods or passengers. These vehicles are classified based on their gross vehicle weight rating (GVWR), which is the total weight a vehicle is designed to safely carry, including its own weight and the weight of any cargo or passengers.

Light-duty trucks typically have a GVWR of 10,000 pounds or less. This places them in the lower weight class compared to medium and heavy-duty trucks, which are used for more substantial hauling tasks.

Types of Light-Duty Trucks:

  • Pickup trucks: Common examples include Ford F-150, Chevrolet Silverado 1500, and Ram 1500.
  • Vans: Cargo vans like the Ford Transit Connect or Mercedes-Benz Metris also fall into the light-duty category.
  • SUVs: While primarily passenger vehicles, some sport utility vehicles (SUVs) like the Toyota RAV4 or Honda CR-V are classified as light-duty trucks due to their design and capabilities.

TSA – Transportation Security Administration

The TSA (Transportation Security Administration) is a U.S. federal agency under the Department of Homeland Security (DHS) responsible for ensuring the security of the nation's transportation systems, including air, rail, highway, and maritime travel.


In Trucking:

TSA is especially relevant to:

  • Hazmat drivers, who must undergo TSA background checks for HAZMAT endorsements.
  • Port and intermodal drivers, who need TWIC cards to access secure maritime areas.

TSA plays a critical role in balancing security with efficient transportation operations across the U.S.

TWIC Card – Transportation Worker Identification Credential

A TWIC card (Transportation Worker Identification Credential) is a security clearance credential issued by the Transportation Security Administration (TSA) to workers who need unescorted access to secure areas of maritime facilities, such as ports, harbors, and vessels.


Requirements to Get a TWIC Card:

  • Must be a U.S. citizen, lawful permanent resident, or have lawful status.
  • Pass a security threat assessment, including a criminal background check and immigration status verification.
  • Apply online or in-person and provide fingerprints, a photo ID, and payment (fee as of 2024 is around $125).

In Trucking:

Many port truck drivers or intermodal carriers need a TWIC card to pick up or deliver freight at secure maritime terminals. Without it, they must be escorted by someone who has authorized access.

U
UCR – Unified Carrier Registration

The UCR (Unified Carrier Registration) is a federal registration program that applies to companies and individuals involved in interstate transportation of goods or passengers in the United States, Canada, or Mexico. The Unified Carrier Registration system is a federally mandated program that requires companies operating commercial motor vehicles in interstate commerce to register and pay an annual fee based on the size of their fleet. This includes:

  • Leasing companies
  • Motor carriers (for-hire and private)
  • Freight forwarders
  • Brokers

You must register for UCR if you:

  1. Operate commercial vehicles (10,001 lbs or more) across state lines.
  2. Act as a broker, freight forwarder, or leasing company involved in interstate transportation — even if you don't own vehicles.

💡 If you’re a purely intrastate operator (you don’t cross state lines), UCR does not apply—unless your state still enforces it locally.


UCR Fee Structure (As of 2024):

UCR fees are based on fleet size, not per vehicle. Here's a general breakdown:

Fleet SizeFee
0–2 vehicles$41
3–5 vehicles$121
6–20 vehicles$240
21–100$844
101–1,000$4,024
1,001+$39,289

(These fees can vary slightly year to year; always confirm with the UCR portal or your state authority.)


When to Register?

  • UCR registration opens every October for the following calendar year.
  • You must register annually.
  • Enforcement typically begins January 1st each year.