Freight is a word utilised to classify the
transferral of items and is commonly a
commercial activity. Items are normally
coordinated into various shipment categories
before they are channelled.
This is dependent on several factors:
- The type of item being shipped, i.e. a
kettle should obviously be put into the
category 'household goods'.
- How large the article is, both in terms of
item size and number.
- How long the item for shipping will be in
transit.
- Dispatches are generally listed as household
goods, express, parcel, and freight Loads.
Pieces of furniture, artistic creations, or
similar Cargo are generally separated as
household goods.
Very small business or personal items like
envelopes are considered as overnight express
or express letter items. These shipments are
rarely over a few pounds, and almost always
move in the carriers own packaging. Service
levels are variable, based on the shippers
choice. Express shipments virtually always
travel some of the way by aviation. An envelope
might go coast to coast through the night or it
might take many days, depending on the service
options and prices chosen.
Bigger items like small boxes are regarded
as parcel or ground consignments. These cargos
are not usually over 100 pounds, with no single
piece of the article weighing more than roughly
70 pounds. Shipments are always boxed,
typically in the shippers packaging and every
now and again in carrier-provided packaging.
Service degrees are again varying; but
virtually all ground cargos will move roughly
500-700 miles per day, going coast to sea-coast
in just about four days depending on origin.
Parcel goods seldom journey by air, and
sometimes move thru road and rail. Parcels make
up the bulk of business-to-consumer (B2C)
loadings.
Beyond HHG, express, and parcel
consignments, movements are described as
freight shipments.
Less-than-truckload (LTL)
freight:
The first class of freight payload is less
than truckload (LTL). The shipments are usually
palletized and packaged for a mixed-freight
environment. 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 loads
heavier than about 15,000 pounds are usually
classed 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. Under the
current U.S. truck pricing model, adding more
to a load costs nothing more.
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 sending
freightage, it is highly crucial to read up on
pricing, claims, and insurance.
More about
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How freight pricing works:
Residential pickup or delivery: anytime a
carrier must pickup or deliver into a
residential area an extra fee is charged,
because in most cases the local laws restrict
the size of delivery trucks, causing the
carrier to utilize a smaller truck to service a
residential area. These requirements equal
fewer shipments per day picked up and
delivered, so these fees are assessed to offset
the carriers costs.
Truckload (TL) carriers usually charge a
rate per mile. The rate varies depending on the
distance, geographic location of the delivery,
items being shipped, equipment type required,
and service times required. TL shipments
usually receive a variety of surcharges very
similar to those described for LTL shipments
above. In the TL market, there are thousands
more small carriers than in the LTL market; so
the use of transportation intermediaries or
brokers is extremely common.
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
numerous locations. Shippers ordinarily first
see that they are employing the safest type of
carrier for their particular type of load:
using an LTL carrier for an LTL object, for
example. While parcel carriers will accept LTL
cargos, and LTL carriers will accept TL
despatches, shippers will sometimes have lower
quality service at higher rates when carriers
service payloads 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 locate the best service
and price for their article. Shippers seek out
all-inclusive quotes that include all
surcharges and accessorial fees.
after the shipper has chosen the mode and
carrier and is organized to ship, they
sometimes over-package their freight object and
verify insurance coverage, to avoid damage and
claims.
Inexperienced shippers typically use the
services of a freight intermediator or
consultant to allow them find the correct
carrier, service, and price for their
items.
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