Freight is a term used to describe the movement of cargo and is generally a commercial operation. Items are for the most part arranged into various shipment categories before they are transported.
This is dependent on numerous factors:
- The nature of the item being shipped, i.e. a kettle would commonly be put into the category 'household goods'.
- How large the item is, both in terms of item sizing and quantity.
- How long the item for shipping will be in transit.
- Goods are usually put into catagories as household goods, express, parcel, and freight Dispatches.
Articles of furniture, art, or similar Shipments are usually sorted as household goods.
Very small business or personal items like envelopes are looked at as overnight express or express letter shipments. These shipments are not usually over a few pounds, and almost always go in the carriers own packaging. Service grades are varying, based on the shippers choice. Express despatches just about always move some portion of the way by aviation. An envelope could go coast to coast through the night or it can take numerous days, depending on the service options and prices chosen.
Bigger things like small boxes are counted as parcel or ground cargos. These loads are rarely over 100 pounds, with no single piece of the item weighing more than about 70 pounds. Shipments are usually boxed, sometimes in the shippers packaging and occasionally in carrier-provided packaging. Service grades are again varying; but the majority of ground items will move roughly 500-700 miles per day, going seashore to sea-coast in around four days depending on origin. Parcel consignments not usually move by air, and occasionally move thru road and rail. Parcels comprise the majority of business-to-consumer (B2C) payloads.
Other than HHG, express, and parcel despatches, movements are termed freight shipments.
Less-than-truckload (LTL) freight:
The first list of freight shipment is less than truckload (LTL). LTL shipments range from 100 pounds to about 15,000 pounds, and are always much less than 28long. However, air freight shipments typically need to move at much faster speeds than 500 miles per day. Air shipments may be booked directly with the carriers or through brokers or online marketplace services. While shipments move faster than standard LTL, a
Truckload (TL) freight:
In the United States of America despatches larger than approximately 15,000 pounds are normally separated 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: 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 freightage, it is extremely crucial to realize the facts about pricing, claims, and insurance.
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How freight pricing works:
The National Motor Freight Traffic Association [1] (NMFTA) issues a publication called the National Motor Freight Classification (NMFC). The NMFC is basically a list of every kind of item that ships via truck.
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:
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 can send any bulk trade goods to several locations. Shippers occasionally first ascertain that they are using the most effective type of carrier for their specific type of shipment: using an LTL carrier for an LTL cargo, for example. While parcel carriers will accept LTL dispatches, and LTL carriers will accept TL cargos, shippers will sometimes see lower quality service at higher rates when carriers service freight that is "non-standard" for their specific company.
assuming the shipper has chosen the best type of carrier, the shipper then shops several carriers in order to locate the right service and price for their freight. Shippers search out all-inclusive quotes that include all surcharges and accessorial costs.
once the shipper has chosen the mode and carrier and is set to ship, they sometimes over-package their freight item and verify insurance policy coverage, to lessen the chance of damage & claims.
Inexperienced shippers on a regular basis use the services of a freight go-between or consultant to allow them find the correct carrier, service, and price for their loadings.
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