Freight shipping is transporting cargo, commodities, and goods in bulk via shipping modes like aircraft, ships, trucks, trains, or roads. It is a crucial element of e-retail and can involve domestic and international land, sea, or air.
However, freight and shipping are two separate terms with separate meanings interconnected, but care should be taken not to use them interchangeably. Although freight involves the transportation of goods via land, sea, or air, freight refers to a larger quantity of goods, whereas shipping refers to a smaller amount of the same.
In this article, you will learn in detail about shipping freight, including key information like freight shipping meaning, the logistics involved in freight shipping companies, how long does freight shipping take, freight shipping costs, how to ship freight, and the like.
What is Freight Shipping?
Freight shipping involves transporting large-scale goods internationally or domestically via preferred shipping modes. A shipment larger than 30 x 30 x 30 inches or weighing more than 68.03 kgs (150 pounds) will be considered freight. It is usually handled by the parent company or third-party freight shipping companies.
Shipping goods that adhere to these dimensions would be cost-effective if shipped via parcel. Freight goods are packed in bulk into pallets in trucks and are either floor-loaded or loaded onto robust containers.
Some generic freight categories include household or express goods, parcels, and many other shipments. Some different classifications include:-
- Less than Truckload (LTL)
- Full Truckload (FTL)
- Partial Truckload
- Intermodal
- Expedited
Benefits of Freight Shipping
Large-scale organizations ship freight regularly. It is cost-effective and offers faster goods delivery, via road, ocean, or air routes. Some of the top benefits of freight shipping include:-
- Top carriers: Important and high-priority shipments require the safest and fastest delivery possible from one point to another. With a reliable freight shipping company, you can be assured that your goods are delivered safely and on time. Online retailers have tie-ups with high-grade and reliable shipping freight companies for the safest delivery possible of their goods to the end customers.
- Save on shipping costs: Businesses are always focused on strategizing how to reduce costs to garner more profits. This is where freight shipping companies come in. They specialize in the shipment of freight via various modes that are cost-effective, easy, and reliable as well.
- On time freight: Time-sensitive shipments have a significantly reduced delivery window, and most of these shipments are made by large-scale companies. With a plethora of reliable shippers, freight shipping has been of excellent service to such companies demanding fast-paced delivery. Companies can choose any method or transportation mode depending on their time frame.
Types of Freight Services
A wide variety of freight shippers that offer a variety of transportation modes are available at your convenience. As an e-commerce provider involved in large-scale, profitable operations, knowing the various types of freight shippers is crucial. You can compare and consider choices before shipping. The multiple modes of freight shipping have been listed below:-
Road transport
Road transport is the most availed mode of transport for the movement of goods between shorter distances within a country. Goods carriers travel through a strategized infrastructure network that enables door-to-door delivery and pickup. In-country deliveries made via air, ship, or train also require the final delivery via road transport.
Rail transport
Rail freight transport is highly available because of being more cost-effective than road transport. It is ideal for covering long-distance deliveries regarding wholesale freight shipment transportation. To streamline this mode of delivery, freight shipping companies usually combine it with other transportation modes.
Maritime transport
Maritime transport is also a commonly availed economical and relatively faster mode of transportation. It is primarily used in international trade. Freight shipping companies have specialized ships that can carry bulk cargo. Prices are adjusted as per the weight carried. This mode of transportation is ideal if you want to transport more cargo.
Air transport
Airfreight is a reliable express courier service for high-value or pharmaceutical and medical products shipment. Although expensive, the main benefit of air transport is the speed.
Multimodal transport
This is a combination of various modes of transport in one shipment. Freight shippers commonly practice this because planes and ships cannot reach the end destination.
Freight Shipping Methods
Ground, ocean, and air freight are widely available shipping methods. While air freight mainly involves using planes, shipments involving the road and ocean require several modes and vehicles for transporting goods. Some of them have been categorized and listed below in detail:-
Ground freight shipping methods
Ground freight is the most commonly used mode of transport for domestic and international shipping. It is the only mode of freight shipping that makes last-mile delivery possible. This makes it a default constituent of multimodal transport offered by freight companies. Some of the modes of ground freight shipping are listed below:-
- Trucks
- Tractors
- Trailers
- Delivery vans
- Railways
Ocean freight shipping methods
Ocean freight is also a standard shipping mode offered by shipping companies for international trade. Although relatively slow, this method enables you to ship any type of product to your target destination. You can transport a large volume of liquids, solids, and even perishables without making a dent in your expenses. The various modes of ocean freight shipping methods are listed below:-
- Cargo ships
- RORO ships
- Bulk carriers
- Barges
5 Freight Shipping Methods
Freight shipping companies offer clients multifaceted options when it comes to modes of shipment that can be chosen as per requirement, convenience and budget. These modes of freight shipping have been described in detail below:-
1. Full truckload (FTL)
Full truckload mainly involves transporting bulk or pallet loads large enough to be loaded onto semi-trailers. The net weight of the total number of goods packed in bulk typically exceeds 15,000 pounds. FTL is much more cost-effective and can prevent the risk of freight damage due to less handling involved, unlike LTL.
2. Less-than-truckload (LTL)
Less-than-truckload, often referred to as LTL freight shipments, is ideal for shipments larger than standard parcels but not as large as FTL shipments that require the space of a full or a semi-trailer. LTL is mainly involved in chipping goods ranging from 68.03 to 6803.88 kg (150 to 15,000 lb).
3. Partial truckload (PTL)
Partial truckload will allow you to divide the cost of one truck with other freight shippers. You can save a lot more than the usual modes of shipment. A partial truckload is an excellent option if your freight weight exceeds 2267.962 (5,000 lbs) or six pallets.
4. Intermodal
Intermodal shipping is referred to as freight shipments processed via a transport combination of trucks and railways. This mode of freight shipping is not only limited to railways and roads but can also include others like ships and air for streamlining the shipment process. The inclusion of rail in this mode of freight shipping is highly cost-effective and environment-friendly because of the reduced use of fuel. It is also deemed the most reliable mode of shipping.
5. Expedited
Expedited freight shipping refers to shipments that require quick delivery and are time-critical. To make the delivery process quicker, expedited freight is ideally transported by air or truck as per convenience and destination point rather than sea freight shipment.
What Are the Factors That Determine Freight Rates?
Comparing and considering shipping rates is an essential part of pricing strategies. You can also use a reliable freight shipping cost calculator. If the general question ‘how much is freight shipping’ is looming, here are some primary factors that can affect rates if you ship by freight.
Dimensions
Freight dimensions play a significant role in freight rates and are calculated in cubic feet. The bigger your package is, the more room it will need in transport, leading you to pay more. To prevent additional costs, high-quality packaging that weighs less is a great way to save money.
Weight
In the case of LTL shipping, the cost is entirely dependent on the dimensions and weight of the freight. Structured weight rates make it cost-effective because the more your load weighs, the lesser you need to pay per 100 pounds.
Value
The freight class of a particular shipment depends on product density and value. Lower valued and fewer priority items have lower rates as they are sturdy and easy to handle. Higher classes are comparatively lightweight items and have a higher rate.
Delivery speed
Companies are always under the obligation to ship packages faster for customer satisfaction. Same-day or overnight deliveries will require you to pay higher freight rates because they must be expedited.
Destination
Your freight is bound to be greater when a shipment requires more handling. The role of drivers is also essential in determining the cost of the duration they have spent at the delivery site. Challenging deliveries with faster turnaround rates will cost you more regarding shipping expenses. The longer distance will also result in the higher shipping cost.
Customs clearance
International marketing will require you to face several challenges. The biggest challenge is dealing with customs and duties. This leaves companies and customers uncertain about the fees that they will charge.
Delays
There have been several disruptions when it comes to shipping ranging from weather conditions, product shortages, pandemics, accidents, state of emergencies, etc. These disruptions can potentially impact supply chains, transportation needs as well as freight costs.
How to Prepare a Freight Shipment
A freight shipping calculator can only give you the estimates and rates of freight shipping. However, in the next step after choosing your service provider, you must consider strategizing proper and efficient preparation when you ship by freight. We have listed some helpful tips below for your reference:-
Prepare appropriately sized pallets
Pallets are wooden structures used for supporting boxes packed for shipment. They need to be appropriately sized and sorted in order. They need to be stacked, bundled, and appropriately secured with proper shipping supplies like strapping and stretch wrap. You should place slip sheets of any material (cardboard or plastic) between layers for even weight distribution.
Design non-palletized shipments
Non-palletized cargo is classified as packages that cannot be transported with pallets because of their size and are not suitable for standard packaging. These loads must be traced back to their respective units for maximum security. You need to ensure that custom-built packaging is used for these non-palletized shipments. It will provide enough interface between the transport unit and the load.
Attach the necessary labels
Labels are the most important aspects you must take care of after packaging the shipment. Not only should it constitute details about the package, such as an address, constituents, and the like, but it also requires proper handling instructions. This will ensure that your package is not mishandled or damaged in transit.
Follow freight carrier instructions
Freight carrier instructions are provided in detail by shippers in a letter format. These letters address every shipping question regarding carriers, insurance, ports, duties, etc.
Factors That Affect LTL Freight Shipping Rates
If you are considering LTL freight shipment, you need to know what affects its shipping rates. Here are some of the factors we have listed below for your reference:-
Freight class
Freight rates are mainly based on the freight class. Every product is categorized based on density, specifications, or the value which determines the transportability of the product.
Distance
Shipping farther to main cities increases the shipping cost as well. Delivering to locations outside the carrier’s standard service area requires the carrier to transfer it to another LTL for last-mile delivery. This results in increased costs.
Base rates
Every carrier has base rates to ensure that any package, regardless of size and weight, can be shipped without incurring a loss.
Minimum charge
All carriers have a minimum charge. This ensures that they can ship packages of any size without the risk of losing money.
Carrier fees
Freight or carrier fees are the amounts a carrier company charges for transporting goods. It is calculated based on the mode of transportation and the distance.
Conclusion
Freight shipping is one of the most budget-saving ways to consider a large-scale e-commerce provider. It comes with several benefits, modes of shipping, and attractive shipping rates. You will be spoiled for choice as a business owner. If you have a small-scale business that is steadily growing, you need to consider shifting your focus to freight shipping instead of handling the shipment process on your own accord.
FAQs
What is the difference between freight and shipping?
Freight is referred to as the goods that are packed and ready to be shipped in bulk. Shipping is the transportation of goods from one point to another.
What is freight shipping time?
Freight shipping time depends on the mode of delivery you have opted for, with the fastest being two days.
What does it mean when shipping says freight?
When a shipment says ‘freight,’ it ideally denotes cargo heavier than 150 lbs and ready to be shipped.
What is the difference between freight in and freight out?
Freight-in is the money a business spends to bring in the goods for production, whereas freight-out is the money spent on shipping goods ready for delivery.
What is the difference between freight and carriage?
Carriage refers to the act of carriage or transportation, whereas freight refers to the goods packed and ready to be transported.
How do you calculate freight per unit?
You can calculate the freight per unit by dividing the total shipment weight by the total number of units required to measure that weight.
How do you determine freight class?
There are three steps you need to follow to measure freight class:-
- Step 1: Measure the width, depth, and height of the shipment in question
- Step 2: Multiply these measurements
Step 3: Divide the shipment weight by the cubic feet in total.
How to calculate freight shipping costs?
To calculate freight shipping costs, you must first divide the shipment weight by the total cubic feet. You will get the density in lb/cubic foot as a result. If you are dealing with multiple pallets, total the weight of every pallet before you divide it by the total cubic feet. Make sure that you round the fractions to the closest whole cubic foot.
When to consider multiweight instead of freight?
Multiweight can help you potentially reduce landed costs. Multiweight shipments also don’t need to be palletized. You need to consider your options and choose multiweight only if it is convenient for the type of goods you are trying to ship.
What classifies a freight shipment?
Any form of goods ready for delivery to their destination that crosses the shipment weight threshold of 150 lbs is considered a freight shipment.