Freight is a term employed to classify the
movement of commodities and is commonly a
commercial process. Items are for the most part
listed into various shipment categories before
they are sent.
This is dependent on a lot of factors:
- The type of item being sent, i.e. a kettle
would usually be put into the family 'household
goods'.
- How large the object is, both in terms of
item sizing and quantity.
- How long the item for sending will be in
transit.
- Cargos are generally tagged as household
goods, express, parcel, and freight Goods.
Furniture, artwork, or like Items are by and
large sorted as household goods.
Very small business or personal shipments
like envelopes are counted as overnight express
or express letter goods. These shipments are
rarely over a few pounds, and just about always
go in the carriers own packaging. Service
grades are variable, based on the shippers
choice. Express goods nearly always go some
portion of the way by aviation. An envelope may
go coast to coast overnight or it may take many
days, depending on the service alternatives and
prices chosen.
Bigger items like small boxes are counted as
parcel or ground dispatches. These dispatches
are seldom over 100 pounds, with no single
piece of the item weighing more than about 70
pounds. Shipments are usually boxed, sometimes
in the shippers packaging and occasionally in
carrier-provided packaging. Service levels are
again varying; but just about all ground
consignments will move around 500-700 miles per
day, going seashore to coast in around four
days depending on origin. Parcel payloads not
usually move by air, and ordinarily move thru
road and rail. Parcels constitute the absolute
majority of business-to-consumer (B2C)
loads.
Beyond HHG, express, and parcel items,
movements are termed freight shipments.
Less-than-truckload (LTL)
freight:
The first listing of freight cargo is less
than truckload (LTL). LTL carriers trailers are
typically 28' long and complete utilization of
a 28' pup is considered capacity. 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 dispatches
larger than approximately 15,000 pounds are
generally sorted as truckload (TL) in that it
is most economical to only use a truck rather
than share it in an LTL environment.
And a full truck is limited to the amount of
weight that a unit can legally carry by the
difference between 80,000 pounds and the weight
of the tractor trailer. Increasing shipment
size has proven to be a significant opportunity
for many companies - particularly large
consumer product companies.
Plans 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 shipping
freightage, it is highly important to see the
details about pricing, claims, and
insurance.
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How freight pricing works:
LTL rates are quoted per 100 pounds or cwt
or per hundred weight. Besides the discount off
of base rate created by the freight class,
there is typically a second discount applied to
the calculated transportation rate. These
discounts are negotiated by the shipper with
individual LTL carriers. For example, a given
LTL lane may have a rate of $50 cwt. If a
shipment is 1,000 lbs at class 70, then the
adjusted base rate is $35 cwt (70% of 50 cwt)
or $350. If the hypothetical shipper had
negotiated a 50% discount on published tarrif
rates, this would give a final price of $175
for the shipment.
Another cost-saving method is facilitating
pickups or deliveries at the carriers
terminals. By doing this, shippers avoid any
accessorial fees that might normally be charged
for liftgate, residential pickup/delivery,
inside pickup/delivery or
notifications/appointments. Carriers or
intermediaries can provide shippers with the
address and phone number for the closest
shipping terminal to the origin and/or
destination.
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 can send any bulk goods to numerous
locations. Shippers usually first ascertain
that they are utilizing the most appropriate
type of carrier for their specific type of
shipment: using an LTL carrier for an LTL
consignment, for example. While parcel carriers
will accept LTL items, and LTL carriers will
accept TL consignments, shippers will generally
get lower quality service at higher rates when
carriers service cargo that is "non-standard"
for their specific company.
when the shipper has chosen the correct form
of carrier, the shipper then shops many
carriers in order to locate the most
appropriate service and price for their
consignment. Shippers search out all-inclusive
quotes that include all surcharges and
accessorial costs.
once the shipper has chosen the mode and
carrier and is geared up to ship, they usually
over-package their freight object and verify
insurance coverage, to stave off damage and
claims.
Inexperienced shippers ofttimes use the
services of a freight intermediary or advisor
to help them locate the most beneficial
carrier, service, and price for their
goods.
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