Freight is a word employed to describe the movement of trade goods and is usually a commercial operation. Items are always put into various shipment categories before they are sent.
This is dependent on numerous factors:
- The type of item being carried, i.e. a kettle may be put into the category 'household goods'.
- How large the load is, both in terms of item size and number.
- How long the item for sending will be in transit.
- Shipments are usually listed as household goods, express, parcel, and freight Items.
Pieces of furniture, fine art, or like Cargo are usually classed as household goods.
Very small business or personal shipments like envelopes are considered as overnight express or express letter items. These shipments are seldom over a few pounds, and just about always travel in the carriers own packaging. Service grades are variable, based on the shippers choice. Express consignments nearly always move some of the way by air. An envelope may go coast to coast overnight or it will take many days, based on the service alternatives and prices chosen.
Bigger items like small boxes are counted as parcel or ground loadings. These loads are rarely over 100 pounds, with no single piece of the payload weighing more than about 70 pounds. Shipments are universally boxed, typically in the shippers packaging and every now and again in carrier-provided packaging. Service levels are again varying; but nearly all ground shipments will move nearly 500-700 miles per day, going coast to sea-coast in roughly four days depending on origin. Parcel cargos seldom move by air, and often move via road and rail. Parcels represent the absolute majority of business-to-consumer (B2C) goods.
Other than HHG, express, and parcel items, movements are termed freight shipments.
Less-than-truckload (LTL) freight:
The first list of freight article is less than truckload (LTL). The shipments are usually palletized and packaged for a mixed-freight environment. 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 goods greater than about 15,000 pounds are occasionally separated as truckload (TL) in that it is most economic 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. Increasing shipment size has proven to be a significant opportunity for many companies - particularly large consumer product companies.
Strategies 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 transporting freight, it is exceedingly important to realize the facts about pricing, claims, and insurance.
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How freight pricing works:
Appointments or notification before pickup or delivery: by default, carriers make pickups and deliveries in order arranged by geographic location (a route). If a shipment requires the carrier to call ahead, or schedule and appointment, the carrier will charge an additional fee for this service.
Often, an LTL shipper may realize savings by utilizing a freight "broker," online marketplace, or other intermediary instead of contracting directly with a trucking company. Brokers can shop the marketplace and obtain lower rates than most smaller shippers can directly. In the Less-than-Truckload (LTL) marketplace, intermediaries typically receive 50% to 80% discounts from published rates, where a small shipper may only be offered a 5% to 30% discount by the carrier.
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:
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 ship any bulk freight to numerous locations. Shippers often first ascertain that they are using the most appropriate type of carrier for their particular type of object: using an LTL carrier for an LTL item, for example. While parcel carriers will accept LTL loads, and LTL carriers will accept TL loadings, shippers will occasionally get lower quality service at higher rates when carriers service freight that is "non-standard" for their specific company.
if the shipper has chosen the best form of carrier, the shipper then shops a lot of carriers in order to locate the most effective service and price for their payload. Shippers search out all-inclusive quotes that include all surcharges and accessorial fees.
once the shipper has chosen the mode and carrier and is readied to ship, they usually over-package their freight shipment and verify insurance coverage, to minimize damage and claims.
Inexperienced shippers regularly use the services of a freight go-between or advisor to allow them find the most beneficial carrier, service, and price for their consignments.
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