Freight shipping is a cost-effective way for businesses to move products from one location to another. It benefits companies that need to ship bulk goods and heavy loads.
However, businesses must understand freight shipping fundamentals before deciding on a carrier. This will help them better navigate quotes and contracts.
Definition
When most people think about logistic companies in Chicago, they picture big trucks carrying giant metal containers to different cities. However, freight shipping is much more than that.
Many businesses use freight as a primary means of moving their goods to destinations across the country or even the world. Whether it’s new inventory in a warehouse, direct-to-consumer orders, or B2B ecommerce shipments, freight can be a valuable way to ensure goods are delivered on time.
Freight shipments are typically divided into two main categories, air freight and truck freight. These are based on the mode of transport used to move cargo and how long it will be in transit.
The first thing to understand about freight shipments is that they are more significant than parcel shipments. Parcel shipments typically max out at 150 pounds and may incur extra charges for parcels that exceed this weight limit.
This can be especially problematic for businesses that sell electronics and furniture items, as those shipments often run afoul of these limitations.
Luckily, there are ways to prevent freight shipments from slipping into the wrong category. The key is knowing what you’re shipping and ensuring that it can be transported safely by freight.
The best way to do this is by using a freight shipping service that will help you navigate the various modes of transportation and find the best fit for your business. This is especially important for international ecommerce, where it can be critical to have reliable freight shipping services that deliver your products on time.
Modes of transport
There are several different ways in which products can be shipped from one place to another. This includes air, water, and land transport.
Air freight is the newest mode of transportation. It has become a preferred shipping method because it is time efficient and reliable. In addition, it is also environmentally friendly since it uses minor amounts of space and fuel.
The ocean is the oldest mode of transportation and has been used to ship goods for over 2,500 years. It is a cost-efficient way to transport large volumes of goods and is also the best option for oversized, hazardous, liquids, and weird-shaped freight.
Intermodal is a type of freight shipping in which a shipment requires two or more modes to reach its destination. This is done to take advantage of the strengths of each way.
This is also a good choice for freight that can be delivered after some time and has a low value. However, it is essential to note that the modes of transport are sometimes different, as some require more than others.
Several factors affect the modes of transport, including cost, timing, and size of shipments. Therefore, the way that will be the most suitable for your business depends on these factors and your specific needs.
Common carriers
Common carriers transport people and goods from one place to another for a fee. Examples include trucking companies, waste removal services, couriers, and taxi services. They are responsible for any loss or damage that occurs during their transportation.
Some standard carriers are regulated by state and federal law. This is because essential public services require a permit before operating legally.
The government, such as telecommunications companies and some oil and gas pipeline operators, do not regulate others. These are also considered common carriers and must provide their services to everyone willing to pay for them unless they have good reason to refuse.
In this case, they can be sued. This can result in large sums of money being paid out.
The most important considerations when choosing a freight carrier are cost, time, and quality. It’s a good idea to ask about discounts for bulk orders, cash back on late or damaged shipments, and how much it will cost to have your freight crated and packed correctly.
Another major factor to consider is the stability of a company. Choosing a carrier that has been in business for a long time is best. This will ensure they have the experience and resources to meet your needs.
Pricing
Freight shipping is moving more significant quantities of goods using various modes of transport. It is an essential part of delivering goods from one location to another and is increasingly vital for businesses looking to boost efficiency, reduce costs and improve customer satisfaction.
The freight price varies depending on the weight and size of the shipment. It is also affected by how far the cargo needs to travel and whether it requires expedited delivery.
Regarding pricing, there are a few different strategies shippers can use to ensure they get the best value for their shipments. These strategies include entry price, value price, and spot rate pricing.
In entry-price pricing, the carrier offers a low rate to gain the trust of shippers and then boosts prices in high-demand times. This strategy is a great way to ensure that your shipments are always covered when the freight market is flush with capacity and average.
It is also an excellent way to ensure you aren’t left out of the running for freight services when the freight market tightens. These carriers usually have contingency plans to recover from a downturn and provide consistent service throughout the year.
Freight class, or National Motor Freight Classification (NMFC), is a standard shipping industry classification used to help simplify the evaluation of billions of goods shipped yearly. This classification system allows for a transparent and fair comparison of commodities, making freight rate negotiations more accessible and efficient.
