Freight is a phrase employed to classify the conveyance of goods and is usually a commercial operation. Items are mostly organised into various shipment classes before they are sent.
This is dependent on many factors:
- The type of item being carried, i.e. a kettle may be put into the listing 'household goods'.
- How large the cargo is, both in terms of item size and amount.
- How long the item for transportation will be in transit.
- Goods are typically branded as household goods, express, parcel, and freight Goods.
Furniture, fine art, or like Items are by and large classed as household goods.
Very small business or personal items like envelopes are considered 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 variable, depending on the shippers choice. Express payloads just about always travel some portion of the way by air travel. An envelope could go coast to coast overnight or it may take many days, depending on the service alternatives and prices paid.
Bigger items like small boxes are regarded as parcel or ground goods. These despatches are not usually over 100 pounds, with no single piece of the consignment weighing more than roughly 70 pounds. Shipments are usually boxed, occasionally in the shippers packaging and sometimes in carrier-provided packaging. Service grades are again varying; but nearly all ground consignments will move more or less 500-700 miles per day, going seacoast to seashore in more or less four days depending on origin. Parcel cargos rarely move by air, and normally move thru road and rail. Parcels represent the majority of business-to-consumer (B2C) items.
Beyond HHG, express, and parcel dispatches, movements are called freight shipments.
Less-than-truckload (LTL) freight:
The first class of freight payload is less than truckload (LTL). LTL carriers trailers are typically 28' long and complete utilization of a 28' pup is considered capacity. 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 loads heavier than roughly 15,000 pounds are generally separated as truckload (TL) in that it is most economical 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 shipping freight, it is extremely significant to understand 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.
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 send any bulk shipment to several locations. Shippers often first see to it that they are using the right type of carrier for their specific type of consignment: using an LTL carrier for an LTL article, for example. While parcel carriers will accept LTL despatches, and LTL carriers will accept TL loadings, shippers will generally experience lower quality service at higher rates when carriers service freight that is "non-standard" for their specific company.
if the shipper has chosen the correct kind of carrier, the shipper then shops various carriers in order to locate the most appropriate service and price for their article. Shippers seek out all-inclusive quotations that include all surcharges and accessorial fees.
when the shipper has chosen the mode and carrier and is readied to ship, they normally over-package their freight shipment and verify insurance coverage, to reduce chances of damage & claims.
Inexperienced shippers often use the services of a freight mediator or advisor to allow them find the best carrier, service, and price for their loadings.
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