Freight is a word employed to describe the transfer of items and is usually a commercial activity. Items are generally coordinated into various shipment categories before they are sent.
This is dependent on several factors:
- The type of item being sent out, i.e. a kettle might fit into the list 'household goods'.
- How large the item is, both in terms of item size and number.
- How long the item for delivery will be in transit.
- Cargos are typically tagged as household goods, express, parcel, and freight Despatches.
Pieces of furniture, artistic productions, or similar Items are mostly sorted as household goods.
Very small business or personal items like envelopes are viewed as overnight express or express letter goods. These shipments are seldom over a few pounds, and nearly always move in the carriers own packaging. Service grades are varying, depending on the shippers choice. Express payloads virtually always move some distance by aviation. An envelope could go coast to coast overnight or it might take several days, based on the service alternatives and prices chosen.
Larger things like small boxes are regarded as parcel or ground dispatches. These consignments are not usually over 100 pounds, with no single piece of the load weighing more than more or less 70 pounds. Shipments are usually boxed, sometimes in the shippers packaging and occasionally in carrier-provided packaging. Service degrees are again varying; but almost all ground dispatches will move approximately 500-700 miles per day, going seashore to coast in approximately four days depending on origin. Parcel loadings seldom travel by air, and commonly move thru road and rail. Parcels represent the bulk of business-to-consumer (B2C) items.
Other than HHG, express, and parcel loads, movements are described as freight shipments.
Less-than-truckload (LTL) freight:
The first family of freight shipment is less than truckload (LTL). LTL represents the majority of freight shipments Crating or other substantial packaging is required for LTL shipments due to the mixed freight environment.
Truckload (TL) freight:
In the United States of America cargos larger than roughly 15,000 pounds are generally sorted as truckload (TL) in that it is most economical to exclusively use a truck rather than share it in an LTL environment.
The gross weight of a truck (tractor trailer 5 axle rig) in the U.S cannot exceed 80,000 in ordinary circumstances. Under the current U.S. truck pricing model, adding more to a load costs nothing more.
Schemes for increasing load size include: precise calculation of the load within the equipment specifications. This is predominantly performed by taking demand from, for example, a Distribution Resource Planning system or a Vendor Managed Inventory system. When sending freightage, it is extremely important to understand pricing, claims, and insurance.
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How freight pricing works:
LTL rates are quoted per 100 pounds or cwt or per hundred weight. Besides the discount off of base rate created by the freight class, there is typically a second discount applied to the calculated transportation rate. These discounts are negotiated by the shipper with individual LTL carriers. For example, a given LTL lane may have a rate of $50 cwt. If a shipment is 1,000 lbs at class 70, then the adjusted base rate is $35 cwt (70% of 50 cwt) or $350. If the hypothetical shipper had negotiated a 50% discount on published tarrif rates, this would give a final price of $175 for the shipment.
Truckload (TL) carriers usually charge a rate per mile. The rate varies depending on the distance, geographic location of the delivery, items being shipped, equipment type required, and service times required. TL shipments usually receive a variety of surcharges very similar to those described for LTL shipments above. In the TL market, there are thousands more small carriers than in the LTL market; so the use of transportation intermediaries or brokers is extremely common.
Cargo insurance:
Cargo insurance only covers significant loss or damage to the cargo only. Carriers insurance does not cover consequential damages like lost sales or downtime on a production line. Also, carrier insurance does not cover the cost of returning damaged cargo to the shipper. Again, cargo insurance is very low and very tightly defined; so shippers must package shipments extremely well and be sure to clarify the specific insurance that will apply to each shipment.
Freight packaging:
All shipments should be palletized and wrapped in plastic to protect from damage. Most shipments should be fully crated in order to ensure a damage-free delivery. A good rule is to ask the carrier or intermediary for the specific packaging requirements for each shipment then exceed those requirements. Also, since shipments may be reloaded several times, it is important that the packaging has all the shipper and consignee info clearly noted on at least two sides of the shipment. Filing claims with freight companies is a cumbersome and time consuming process, so shippers should take extra care in packaging to avoid freight claims.
Freight shipping summary:
Railcars can send any bulk commodities to numerous locations. Shippers typically first see that they are applying the right type of carrier for their specific type of shipment: using an LTL carrier for an LTL object, for example. While parcel carriers will accept LTL goods, and LTL carriers will accept TL consignments, shippers will commonly have lower quality service at higher rates when carriers service freight that is "non-standard" for their particular company.
assuming the shipper has chosen the right sort of carrier, the shipper then shops various carriers in order to locate the best service and price for their load. Shippers seek out all-inclusive quotes that include all surcharges and accessorial costs.
once the shipper has chosen the mode and carrier and is readied to ship, they commonly over-package their freight shipment and verify insurance policy coverage, to lessen the chance of damage and claims.
Inexperienced shippers often use the services of a freight intermediator or advisor to help them locate the most beneficial carrier, service, and price for their despatches.
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