What is Freight?
Freight indicates products or goods transported from one point to another through ships, trucks, and airplanes. Freight is usually transported in bulk to the specified destination. Thus, freight shipping is used to reduce the delivery costs of a product.
Significance of Freight in an E-commerce Shipping and Delivery
As large products are carried in bulk, freight plays a huge role in burning down the cost of a product during the middle mile of a delivery cycle.
- Increased product inflow: Large shipments are transported in bulk. Therefore, the intermediate warehouse and storage units can expect higher quantities of products for processing. It allows such storage units to ensure the optimum use of available resources.
- Cost reduction: Large quantities of shipments are transported in one go, reducing the cost of shipping. Furthermore, storage units can receive and process larger cargo at once. Such a situation also helps further reduce costs, which benefits the sellers.
Prerequisites of Freight and How It Works
As freight ships large quantities of product, one sending products is required. Ensuring a half-load is the only requirement of using freights for transportation.
- Inspection: Before loading, the documents are verified against the products to be transported.
- Loading: Once the verification is completed, the products are divided, categorized, and loaded as per the associated shipping company’s protocol.
Use Case with Freight
A freight forwarder received 3,000 handbags from seller A, 5,000 women’s footwear from seller B, and 2,000 men’s footwear from seller C. All the sellers required their products to be shipped to different warehouses in Sydney, starting from Phuket. Therefore, the freight forwarder used a single freight to send 10,000 units of the mentioned products.