Freight is a term applied to describe the movement of trade goods and is typically a commercial activity. Items are more often than not organised into various shipment families before they are carried.
This is dependent on several factors:
- The type of item being shipped, i.e. a kettle could be expected to be put into the listing 'household goods'.
- How large the cargo is, both in terms of item size and number.
- How long the item for transportation will be in transit.
- Goods are generally branded as household goods, express, parcel, and freight Items.
Furniture, art pieces, or similar Shipments are mostly sorted as household goods.
Very small business or personal items like envelopes are regarded as overnight express or express letter shipments. These shipments are rarely over a few pounds, and virtually always go in the carriers own packaging. Service levels are variable, depending on the shippers choice. Express loads nearly always go some of the way by air. An envelope will go coast to coast overnight or it can take many days, based on the service choices and prices paid.
Bigger items like small boxes are considered as parcel or ground loads. These loads are rarely over 100 pounds, with no single piece of the shipment weighing more than approximately 70 pounds. Shipments are usually boxed, occasionally in the shippers packaging and sometimes in carrier-provided packaging. Service levels are again variable; but just about all ground payloads will move almost 500-700 miles per day, going sea-coast to seashore in about four days depending on origin. Parcel dispatches seldom go by air, and usually move thru road and rail. Parcels comprise the majority of business-to-consumer (B2C) payloads.
Aside from HHG, express, and parcel cargos, movements are termed freight shipments.
Less-than-truckload (LTL) freight:
The first class of freight article is less than truckload (LTL). LTL shipments range from 100 pounds to about 15,000 pounds, and are always much less than 28long. Air cargo or air freight shipments are very similar to LTL shipments in terms of size and packaging requirements.
Truckload (TL) freight:
In the United States of America shipments greater than approximately 15,000 pounds are generally classed as truckload (TL) in that it is most frugal to only use a truck rather than share it in an LTL environment.
A load is limited to the space available in the trailer -- nominally 48' or 53 long and about 100 inches wide and 106 inches high. Under the current U.S. truck pricing model, adding more to a load costs nothing more.
Programs for increasing load size include: consolidating orders onto the truck using a Transportation management system. Here the "optimal combination of orders and stops can be used to fill out the truck. When sending freight, it is extremely important to read up on 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.
Inside pickup or delivery: requiring the truck driver to pickup or deliver inside a building a route takes longer to complete. The carrier will charge an additional fee for this service. Also, charges for additional insurance or literally hundreds of other possibilities may be added to the final freight bill. It is extremely important that the LTL shipper works with the carrier or intermediary to completely understand all of the requirements of a shipment in order for an accurate price to be quoted.
Cargo insurance:
Whether a shipper deals directly with a carrier or uses an intermediary, the amount of cargo insurance coverage the carrier will be providing on the shipment must cover the cargo value. Shippers do not assume that full-coverage insurance is provided, as it almost never is. Shippers typically ask the carrier or intemediary about the procedure in place regarding freight loss or damage claims. Responsible carriers and intermediaries will always have additional insurance available for purchase and will have fast and easy ways to manage claims.
Freight packaging:
Unlike small parcel shipping via a delivery company like Federal Express or UPS, shipping freight has a much higher likelihood of damage. LTL companies pack lots of different types of freight onto lots of different trailers using forklifts and other heavy equipment, creating a harsh and dirty environment for freight. Other LTL shipments will be packed around and on top of a given customer's shipment; so all freight shipments should be packaged very carefully.
Freight shipping summary:
Railcars may ship any bulk freight to many locations. Shippers commonly first check that they are using the most effective type of carrier for their particular type of payload: using an LTL carrier for an LTL load, for example. While parcel carriers will accept LTL despatches, and LTL carriers will accept TL consignments, shippers will often get lower quality service at higher rates when carriers service consignments that is "non-standard" for their specific company.
once the shipper has chosen the right kind of carrier, the shipper then shops various carriers in order to locate the best service and price for their cargo. Shippers search out all-inclusive quotes that include all surcharges and accessorial costs.
after the shipper has chosen the mode and carrier and is prepared to ship, they usually over-package their freight shipment and verify policy coverage, to reduce chances of damage and claims.
Inexperienced shippers regularly use the services of a freight intermediary or adviser to help them find the correct carrier, service, and price for their loadings.
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