Freight is a word utilized to classify the transfer of commodities and is generally a commercial operation. Items are typically listed into various shipment families before they are sent out.
This is dependent on many factors:
- The type of item being sent out, i.e. a kettle would be expected to fit into the class 'household goods'.
- How large the load is, both in terms of item size and quantity.
- How long the item for sending will be in transit.
- Payloads are usually checked as household goods, express, parcel, and freight Despatches.
Pieces of furniture, art, or similar Shipments are commonly classed as household goods.
Very small business or personal things like envelopes are looked at as overnight express or express letter shipments. These shipments are seldom over a few pounds, and virtually always journey in the carriers own packaging. Service grades are variable, depending on the shippers choice. Express loads almost always journey some distance by air. An envelope could go coast to coast through the night or it will take several days, depending on the service selections and prices chosen.
Bigger things like small boxes are regarded as parcel or ground consignments. These payloads are not usually over 100 pounds, with no single piece of the payload weighing more than close to 70 pounds. Shipments are usually packaged, typically in the shippers packaging and every now and again in carrier-provided packaging. Service grades are again varying; but just about all ground loads will move more or less 500-700 miles per day, going coast to seashore in close to four days depending on origin. Parcel goods not usually go by air, and commonly move thru road and rail. Parcels make up the majority of business-to-consumer (B2C) dispatches.
Aside from HHG, express, and parcel payloads, movements are described as freight shipments.
Less-than-truckload (LTL) freight:
The first category of freight item is less than truckload (LTL). LTL shipments are also often referred to as "motor freight". 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 consignments heavier than about 15,000 pounds are typically sorted as truckload (TL) in that it is most frugal to exclusively 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. Increasing shipment size has proven to be a significant opportunity for many companies - particularly large consumer product companies.
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 transporting freight, it is highly significant to read up on pricing, claims, and insurance.
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How freight pricing works:
Besides class, rates, and discounts, an LTL carrier will apply a wide range of surcharges and accessorial charges that will affect the final price of the shipment. Most shipments will receive a fuel surcharge, which is always a significant proportion of the overall cost, possibly as much as 30% or more.
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:
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:
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 could ship any bulk shipment to many locations. Shippers typically first check that they are applying the most beneficial type of carrier for their specific type of payload: using an LTL carrier for an LTL cargo, for example. While parcel carriers will accept LTL cargos, and LTL carriers will accept TL loads, shippers will normally see lower quality service at higher rates when carriers service freight that is "non-standard" for their specific company.
once the shipper has chosen the correct kind of carrier, the shipper then shops a lot of carriers in order to find the most appropriate service and price for their freight. Shippers seek out all-inclusive quotes that include all surcharges and accessorial fees.
when the shipper has chosen the mode and carrier and is organised to ship, they usually over-package their freight cargo and verify insurance policy coverage, to avoid damage & claims.
Inexperienced shippers oftentimes use the services of a freight mediator or advisor to help them locate the most effective carrier, service, and price for their items.
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