Freight is a term employed to classify the transportation of cargo and is normally a commercial activity. Items are largely arranged into various shipment classes before they are carried.
This is dependent on various factors:
- The type of item being shipped, i.e. a kettle could easily fit into the family 'household goods'.
- How large the load is, both in terms of item sizing and quantity.
- How long the item for sending will be in transit.
- Cargos are generally categorized as household goods, express, parcel, and freight Cargos.
Articles of furniture, art, or alike Cargo are commonly classified as household goods.
Very small business or personal shipments like envelopes are viewed 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 levels are varying, depending on the shippers choice. Express shipments almost always travel some of the way by air travel. An envelope might go coast to coast overnight or it may take several days, depending on the service choices and prices chosen.
Bigger items like small boxes are considered as parcel or ground goods. These dispatches are rarely over 100 pounds, with no single piece of the cargo weighing more than about 70 pounds. Shipments are universally boxed, sometimes in the shippers packaging and occasionally in carrier-provided packaging. Service levels are again variable; but most ground items will move more or less 500-700 miles per day, going coast to seashore in about four days depending on origin. Parcel consignments seldom go by air, and often move thru road and rail. Parcels constitute the bulk of business-to-consumer (B2C) despatches.
Beyond HHG, express, and parcel loadings, movements are described as freight shipments.
Less-than-truckload (LTL) freight:
The first listing of freight cargo is less than truckload (LTL). LTL shipments range from 100 pounds to about 15,000 pounds, and are always much less than 28long. 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 greater than about 15,000 pounds are occasionally sorted as truckload (TL) in that it is most frugal to only use a truck rather than share it in an LTL environment.
TL shipments usually travel as the only shipment on a trailer and TL shipments usually deliver on exactly the same trailer as they are picked up on. Under the current U.S. truck pricing model, adding more to a load costs nothing more.
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 sending freightage, it is highly important to understand 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.
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:
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 might ship any bulk trade goods to many locations. Shippers typically first check that they are utilizing the right type of carrier for their specific type of cargo: using an LTL carrier for an LTL shipment, for example. While parcel carriers will accept LTL cargos, and LTL carriers will accept TL payloads, shippers will typically have lower quality service at higher rates when carriers service consignments that is "non-standard" for their particular company.
if the shipper has chosen the right sort of carrier, the shipper then shops several carriers in order to find the most beneficial service and price for their payload. Shippers seek out all-inclusive quotations that include all surcharges and accessorial costs.
once the shipper has chosen the mode and carrier and is ready to ship, they often over-package their freight payload and verify insurance coverage, to ward off damage and claims.
Inexperienced shippers on a regular basis use the services of a freight go-between or advisor to allow them locate the right carrier, service, and price for their loads.
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