Freight is a term used to describe the conveyance of items and is usually a commercial process. Items are more often than not set up into various shipment families before they are shipped out.
This is dependent on several factors:
- The nature of the item being sent out, i.e. a kettle would commonly fit into the category 'household goods'.
- How large the load is, both in terms of item sizing and number.
- How long the item for shipping will be in transit.
- Loads are usually put into catagories as household goods, express, parcel, and freight Cargos.
Articles of furniture, fine art, or similar Cargo are ordinarily classified as household goods.
Very small business or personal items like envelopes are looked at as overnight express or express letter items. These shipments are seldom over a few pounds, and nearly always go in the carriers own packaging. Service levels are varying, based on the shippers choice. Express items almost always go some portion of the way by air. An envelope will go coast to coast overnight or it could take numerous days, depending on the service options and prices paid.
Larger shipments like small boxes are counted as parcel or ground consignments. These dispatches are rarely over 100 pounds, with no single piece of the item weighing more than around 70 pounds. Shipments are universally packaged, sometimes in the shippers packaging and occasionally in carrier-provided packaging. Service grades are again varying; but the majority of ground dispatches will move close to 500-700 miles per day, going seacoast to seashore in more or less four days depending on origin. Parcel despatches not usually go by air, and normally move via road and rail. Parcels make up the bulk of business-to-consumer (B2C) goods.
Other than HHG, express, and parcel goods, movements are called freight shipments.
Less-than-truckload (LTL) freight:
The first list of freight consignment is less than truckload (LTL). The shipments are usually palletized and packaged for a mixed-freight environment. 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 payloads greater than roughly 15,000 pounds are occasionally separated as truckload (TL) in that it is most economical to only 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. Increasing shipment size has proven to be a significant opportunity for many companies - particularly large consumer product companies.
Ideas 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 cargo, it is highly significant to read up on pricing, claims, and insurance.
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How freight pricing works:
More dense items such as steel and machinery have low classifications such as Class 50 thru 85. Fragile or bulky items fall into freight classes 125 to 500, and pay higher shipment costs.
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:
About 10% of all freight shipments will experience some significant loss or damage. It is a common misconception that a freight rate includes full coverage insurance, when in fact a base freight rate typically includes only a bare minimum of cargo insurance. A shipper should always ask their carrier or intermediary what the insurance coverage is for every specific shipment. LTL shipments will often be insured for less than 25 cents per pound, and TL shipments will often be insured for only slightly more than LTL shipments. Most TL carriers have maximum cargo insurance of $100,000 for the entire load; but for a 40,000 load, thats only about $2.50 per pound.
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 might ship any bulk freight to many locations. Shippers generally first check that they are applying the right type of carrier for their specific type of article: using an LTL carrier for an LTL cargo, for example. While parcel carriers will accept LTL payloads, and LTL carriers will accept TL consignments, shippers will ordinarily have lower quality service at higher rates when carriers service cargo that is "non-standard" for their specific company.
assuming the shipper has chosen the correct kind of carrier, the shipper then shops many carriers in order to find the most appropriate service and price for their payload. Shippers search out all-inclusive quotes that include all surcharges and accessorial expences.
when the shipper has chosen the mode and carrier and is ready to ship, they occasionally over-package their freight object and verify insurance policy coverage, to avert damage & claims.
Inexperienced shippers oftentimes use the services of a freight intermediator or advisor to help them locate the right carrier, service, and price for their loadings.
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