Freight is a phrase used to classify the transport of trade goods and is commonly a commercial activity. Items are more often than not set into various shipment families before they are sent.
This is dependent on many factors:
- The nature of the item being sent, i.e. a kettle would commonly fit into the list 'household goods'.
- How large the payload is, both in terms of item sizing and number.
- How long the item for sending will be in transit.
- Shipments are ordinarily listed as household goods, express, parcel, and freight Shipments.
Articles of furniture, art, or alike Shipments are always classified as household goods.
Very small business or personal things like envelopes are counted as overnight express or express letter items. These shipments are seldom over a few pounds, and nearly always move in the carriers own packaging. Service degrees are varying, depending on the shippers choice. Express consignments virtually always move some distance by air travel. An envelope will go coast to coast through the night or it can take several days, depending on the service selections and prices chosen.
Bigger shipments like small boxes are considered as parcel or ground loadings. These dispatches are not usually over 100 pounds, with no single piece of the cargo weighing more than around 70 pounds. Shipments are usually boxed, every now and again in the shippers packaging and occasionally in carrier-provided packaging. Service levels are again varying; but most ground items will move almost 500-700 miles per day, going sea-coast to seashore in around four days depending on origin. Parcel loadings seldom journey by air, and commonly move thru road and rail. Parcels comprise the bulk of business-to-consumer (B2C) dispatches.
Other than HHG, express, and parcel loads, movements are described as freight shipments.
Less-than-truckload (LTL) freight:
The first class of freight article is less than truckload (LTL). LTL carriers trailers are typically 28' long and complete utilization of a 28' pup is considered capacity. Unlike express or parcel, LTL shippers must provide their own packaging, as LTL carriers do not provide any packaging supplies or assistance.
Truckload (TL) freight:
In the United States of America items larger than around 15,000 pounds are commonly classed as truckload (TL) in that it is most economical 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.
Strategies 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 freightage, it is extremely important to realize the facts about pricing, claims, and insurance.
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How freight pricing works:
Express letter and parcel carriers typically have fairly simple pricing based on package size and service level requested.
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:
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:
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 can send any bulk cargo to several locations. Shippers normally first see that they are applying the best 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 payloads, shippers will normally have lower quality service at higher rates when carriers service payloads that is "non-standard" for their particular company.
once the shipper has chosen the right type of carrier, the shipper then shops a lot of carriers in order to find the best service and price for their object. Shippers search 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 payload and verify policy coverage, to head off damage & claims.
Inexperienced shippers ofttimes use the services of a freight mediator or advisor to allow them locate the right carrier, service, and price for their despatches.
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