Freight is a term applied to describe the transfer of commodities and is normally a commercial activity. Items are typically coordinated into various shipment families before they are sent out.
This is dependent on various factors:
- The nature of the item being sent out, i.e. a kettle could be expected to fit into the category 'household goods'.
- How large the article is, both in terms of item size and number.
- How long the item for sending will be in transit.
- Shipments are occasionally put into catagories as household goods, express, parcel, and freight Payloads.
Articles of furniture, artistic productions, or like Shipments are commonly separated as household goods.
Very small business or personal items like envelopes are considered as overnight express or express letter shipments. These shipments are rarely over a few pounds, and just about always travel in the carriers own packaging. Service levels are variable, depending on the shippers choice. Express shipments virtually always journey some distance by air travel. An envelope will go coast to coast overnight or it will take several days, depending on the service alternatives and prices chosen.
Larger items like small boxes are regarded as parcel or ground despatches. These dispatches are seldom over 100 pounds, with no single piece of the shipment weighing more than close to 70 pounds. Shipments are usually boxed, occasionally in the shippers packaging and typically in carrier-provided packaging. Service grades are again varying; but just about all ground payloads will move roughly 500-700 miles per day, going coast to sea-coast in about four days depending on origin. Parcel goods rarely travel by air, and generally move via road and rail. Parcels represent the absolute majority of business-to-consumer (B2C) despatches.
Other than HHG, express, and parcel loadings, movements are referred to as freight shipments.
Less-than-truckload (LTL) freight:
The first family of freight consignment is less than truckload (LTL). LTL shipments are also often referred to as "motor freight". 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 loadings heavier than roughly 15,000 pounds are commonly sorted as truckload (TL) in that it is most economic to exclusively use a truck rather than share it in an LTL environment.
The gross weight of a truck (tractor trailer 5 axle rig) in the U.S cannot exceed 80,000 in ordinary circumstances. Increasing shipment size has proven to be a significant opportunity for many companies - particularly large consumer product companies.
Strategies for increasing load size include: reducing truck equipment weights for example, by "light weighting" the equipment. This may involve extensive use of lighter- weight materials such as aluminum. When sending freight, it is highly important to realize the facts about pricing, claims, and insurance.
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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:
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 could ship any bulk freight to numerous locations. Shippers sometimes first ensure that they are employing the most beneficial type of carrier for their particular type of shipment: using an LTL carrier for an LTL object, for example. While parcel carriers will accept LTL loadings, and LTL carriers will accept TL cargos, shippers will normally have lower quality service at higher rates when carriers service shipments that is "non-standard" for their specific company.
when the shipper has chosen the best sort of carrier, the shipper then shops several carriers in order to locate the best service and price for their item. Shippers search out all-inclusive quotes that include all surcharges and accessorial expences.
once the shipper has chosen the mode and carrier and is geared up to ship, they normally over-package their freight item and verify insurance policy coverage, to ward off damage and claims.
Inexperienced shippers frequently use the services of a freight intermediator or advisor to allow them locate the most effective carrier, service, and price for their goods.
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