Terms used in the car shipping industry

Backhaul: The return trip portion of a carrier’s route, often offering discounted rates to fill empty trailer space.

Bill of Lading: The legal document that serves as both a receipt for the vehicle shipment and a contract outlining the terms of transport. This is the most important paperwork in any auto transport transaction.

Bonded Carrier: A transport company that has purchased a surety bond to provide financial protection to customers in case of loss, damage, or failure to perform services as promised.

Broker Fee: The commission charged by auto transport brokers for arranging shipment between customers and carriers, typically built into the total quoted price.

Brokerage Agreement: The contract between a customer and broker outlining terms, responsibilities, and service expectations.

Car Hauler: The professional driver who operates the auto carrier truck and is responsible for safely loading, securing, transporting, and delivering vehicles.

Cargo Insurance: Specialized insurance policies that cover transported vehicles against damage, theft, or total loss during transit.

Carrier: The trucking company that owns and operates the actual vehicles used to transport cars, as opposed to brokers who only arrange the service.

Chassis: The frame and wheels of the transport trailer that carries the vehicles, separate from the truck cab.

COD (Cash on Delivery): A payment arrangement where the customer pays the remaining balance at the time the vehicle is delivered, usually requiring cash, money order, or certified check.

Commercial Transport: Shipping services designed for businesses, dealerships, and fleet operators rather than individual consumers.

Consolidation: Combining multiple smaller shipments into a single larger load to improve efficiency and reduce costs.

Covered Transport: Vehicle shipping using enclosed trailers that protect cars from weather, road debris, and other environmental hazards during transit.

Cross-Docking: A logistics technique where vehicles are transferred directly from one carrier to another without intermediate storage.

Customs Clearance: Required documentation and inspection processes for vehicles crossing international borders.

Cut-off Date: The final date by which a shipment must be arranged or delivered to meet specific timing requirements.

Damage Claim: A formal request for compensation filed when a vehicle is damaged during transport, requiring documentation and photos as evidence.

Deadhead: When a carrier travels empty to reach a pickup location or return to base after delivery.

Dealership Transport: Specialized auto shipping services designed for car dealers, often involving multiple vehicles and specific delivery scheduling requirements.

Delivery Receipt: Formal acknowledgment signed by the recipient confirming they received their vehicle in the documented condition.

Destination Charges: Additional fees that may apply at the delivery location, such as storage or special handling costs.

Department of Transportation (DOT): The federal agency that regulates commercial vehicle operations, including licensing, insurance, and safety requirements for auto transport companies.

Dispatch: The coordination center that manages driver assignments, route planning, and customer communications.

Door-to-Door Service: Pickup and delivery directly at the customer’s specified addresses, as opposed to terminal-to-terminal service.

Double-Deck Trailer: A specialized carrier with two levels that can transport more vehicles by utilizing vertical space.

Driveaway Service: An alternative to truck transport where a professional driver actually drives the customer’s vehicle to the destination.

Electronic Logging Device (ELD): Mandatory equipment that tracks driver hours to ensure compliance with federal rest requirements.

Enclosed Trailer: A fully covered trailer that provides maximum protection for vehicles during transport, typically used for luxury, classic, or high-value cars.

Expedite Fee: Additional charge for faster-than-standard service that prioritizes a shipment over regular bookings.

Expedited Shipping: Faster-than-normal transport service that prioritizes a shipment for quicker pickup and delivery, usually at a premium price.

First Available Truck: A service where the vehicle is loaded onto the next available carrier heading in the right direction, rather than waiting for a specific truck.

Fleet Transport: Specialized services for moving multiple vehicles owned by the same company or organization.

FMCSA (Federal Motor Carrier Safety Administration): The government agency that oversees safety regulations and licensing for commercial trucking operations, including auto transport companies.

Freight Class: Classification system that determines shipping rates based on vehicle size, weight, and transport requirements.

Guaranteed Pickup: Premium service promising vehicle collection within a specific timeframe, usually with penalty clauses.

Hard-Sided Enclosed: Trailers with solid metal walls providing the highest level of protection for transported vehicles.

Hauler: Another term for the truck driver who transports vehicles on an auto carrier.

Hazmat: Hazardous materials that may be present in some vehicles and require special handling and documentation.

Independent Contractor: Self-employed drivers who own their equipment and contract with brokers or direct customers.

Inoperable Vehicle: A car that cannot run, steer, or brake under its own power, requiring special equipment and techniques for loading and transport.

Insurance Coverage: Protection policies that cover potential damage to vehicles during transport, which may be provided by the carrier, broker, or customer’s personal policy.

Import/Export Transport: Specialized services for vehicles crossing international borders, including port handling and customs procedures.

Jockey Driver: A driver who specializes in moving vehicles short distances, often within ports or terminal facilities.

Lane Coverage: The geographic routes and markets that a carrier or broker regularly serves.

Lead Time: The amount of advance notice needed to schedule vehicle pickup and transport.

Liability Coverage: The level of financial responsibility the carrier assumes for potential loss or damage to transported vehicles.

Load Planning: The strategic arrangement of vehicles on a trailer to maximize capacity while maintaining safety and weight compliance.

Mechanical Breakdown: When a transport truck experiences equipment failure, potentially delaying delivery schedules.

Multi-Car Transport: Shipping multiple vehicles from the same customer in a single transaction, often at discounted per-vehicle rates.

MC Number: The Motor Carrier identification number assigned by FMCSA to licensed trucking companies.

Nested Loading: Efficiently positioning vehicles of different sizes together to maximize trailer space utilization.

Non-Running Vehicle: A car that cannot operate normally and requires special handling during loading and unloading.

Open Transport: Vehicle shipping using uncovered trailers, exposing cars to weather but offering the most economical shipping option.

Oversize Load: Vehicles that exceed standard dimensions and require special permits and routing for transport.

Owner-Operator: An independent truck driver who owns their equipment and contracts directly with brokers or shippers.

Port Storage: Temporary holding facilities at seaports where vehicles await pickup or further transport arrangements.

Pre-Trip Inspection: Required safety check of the transport vehicle and equipment before beginning any journey.

Proof of Delivery: Documentation confirming that a vehicle was successfully delivered, typically including signatures and condition notes.

Quality Assurance: Systematic processes carriers use to ensure consistent service standards and customer satisfaction.

Quote: An estimate of shipping costs provided to potential customers, which may be binding or subject to change based on final details.

Relay Transport: Multi-driver system where different operators handle different segments of a long-distance shipment.

Route Planning: The process of determining the most efficient path for transporting vehicles between pickup and delivery locations.

Running Vehicle: A car in normal operating condition that can be driven onto and off of the transport trailer.

Seasonal Pricing: Rate fluctuations based on demand patterns, weather conditions, and seasonal migration trends.

Shipper: The party (customer) who is sending the vehicle and initiating the transport service.

Soft-Sided Enclosed: Trailers with flexible canvas or vinyl covers that provide weather protection at lower cost than hard-sided options.

Split Delivery: When multiple vehicles from the same customer are delivered to different final destinations.

Spot Market: The immediate shipping marketplace where carriers and brokers arrange transport for vehicles that need to move quickly.

Staging Area: Temporary parking location where vehicles wait to be loaded onto transport carriers.

Surcharge: Additional fees applied for special circumstances like fuel costs, tolls, or unusual service requirements.

Tare Weight: The empty weight of the transport trailer before any vehicles are loaded.

Terminal-to-Terminal: Service where customers drop off and pick up vehicles at designated facilities rather than at their personal addresses.

Title Transfer: Documentation process for vehicles that change ownership during or related to transport.

Tracking: The ability to monitor a vehicle’s location and status during transport.

Transport Order: The official booking and instructions for moving a specific vehicle.

Tri-Axle Trailer: Heavy-duty trailer with three axles designed to distribute weight and carry larger loads.

Turnaround Time: The period required for a carrier to complete delivery and become available for the next load.

Undercarriage: The bottom portion of vehicles that may be inspected for damage before and after transport.

USDOT Number: The Department of Transportation identification number required for commercial carriers operating across state lines.

Valuation Coverage: The maximum amount a carrier will pay for vehicle damage, which may be less than full replacement value.

Vehicle Condition Report: Documentation of a car’s condition before and after transport, noting any existing damage or issues.

VIN (Vehicle Identification Number): The unique 17-character code used to identify specific vehicles in transport documentation.

Wash and Detail: Optional services some carriers offer to clean vehicles before delivery, though this is uncommon due to liability concerns.

Weight Distribution: The process of strategically positioning vehicles on a trailer to ensure proper balance and comply with highway weight limits.

Weigh Station: Official checkpoints where commercial vehicles must stop to verify compliance with weight regulations.

White Glove Service: Premium transport service offering extra care, protection, and attention to detail, typically used for luxury or exotic vehicles.

Yard Storage: Secure facilities where vehicles may be temporarily held before pickup or after delivery.

Zone Pricing: Rate structure based on geographic regions rather than exact mileage calculations.