Freight is a word used to classify the transit of items and is normally a commercial procedure. Items are normally formed into various shipment families before they are shipped out.
This is dependent on numerous factors:
- The type of item being sent out, i.e. a kettle would usually fit into the list 'household goods'.
- How large the consignment is, both in terms of item sizing and quantity.
- How long the item for delivery will be in transit.
- Items are generally packed as household goods, express, parcel, and freight Dispatches.
Pieces of furniture, artwork, or similar Cargo are more often than not classed as household goods.
Very small business or personal items like envelopes are counted as overnight express or express letter shipments. These shipments are not usually over a few pounds, and just about always move in the carriers own packaging. Service grades are varying, based on the shippers choice. Express items almost always go some of the way by air travel. An envelope might go coast to coast overnight or it may take many days, based on the service options and prices paid.
Larger things like small boxes are looked at as parcel or ground dispatches. These loads are not usually over 100 pounds, with no single piece of the shipment 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 degrees are again varying; but virtually all ground shipments will move around 500-700 miles per day, going sea-coast to seacoast in roughly four days depending on origin. Parcel consignments rarely travel by air, and typically move thru road and rail. Parcels constitute the absolute majority of business-to-consumer (B2C) despatches.
Beyond HHG, express, and parcel dispatches, movements are referred to as freight shipments.
Less-than-truckload (LTL) freight:
The first listing of freight shipment is less than truckload (LTL). The shipments are usually palletized and packaged for a mixed-freight environment. 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 payloads greater than approximately 15,000 pounds are sometimes classed as truckload (TL) in that it is most frugal 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.
Programs 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 cargo, it is highly significant to know 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.
Often, an LTL shipper may realize savings by utilizing a freight "broker," online marketplace, or other intermediary instead of contracting directly with a trucking company. Brokers can shop the marketplace and obtain lower rates than most smaller shippers can directly. In the Less-than-Truckload (LTL) marketplace, intermediaries typically receive 50% to 80% discounts from published rates, where a small shipper may only be offered a 5% to 30% discount by the carrier.
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 could send any bulk cargo to numerous locations. Shippers often first ensure that they are employing the correct type of carrier for their particular type of shipment: using an LTL carrier for an LTL cargo, for example. While parcel carriers will accept LTL loadings, and LTL carriers will accept TL loads, shippers will normally get 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 form of carrier, the shipper then shops numerous carriers in order to locate the most appropriate service and price for their freight. Shippers seek out all-inclusive quotes that include all surcharges and accessorial fees.
whenever the shipper has chosen the mode and carrier and is readied to ship, they typically over-package their freight object and verify insurance coverage, to stave off damage & claims.
Inexperienced shippers frequently use the services of a freight go-between or consultant to allow them find the most appropriate carrier, service, and price for their dispatches.
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