A Short Guide to Freight Shipping

Freight shipping is the process of transporting goods and commodities in bulk, either by land, sea, or air. Bulk shipping is not only efficient and economical, it can also accommodate a vast array of cargo, everything from lumber, grain, and iron ore to televisions, soft drinks, and breakfast cereals. It’s a critical component of modern economies, allowing businesses to meet consumer demand through the global exchange of products, resources, and merchandise.

For businesses that deal with physical goods and raw materials, freight transportation directly impacts your costs, operations, and competitive advantage. In this guide, we’ll cover the types of freight shipping and equipment, factors that affect pricing, and the best way to ready cargo – to help you make informed decisions and optimize your supply chain.

Freight

Freight is classified as any shipment that weighs over 150 pounds, with height, width, and depth greater than 30 x 30 x 30 inches. Anything smaller is considered a parcel and should be entrusted to a mail carrier or package delivery company. While freight can consist of single items (e.g. furniture, refrigerators, motorcycles), most freight is comprised of smaller items collected and secured on pallets or skids.

A standard pallet or skid is 48 x 40 inches, with a maximum height of 80 inches. Any pallet over 48 inches tall is considered double-stacked. When fully loaded, a full-size semi-trailer can hold 26–30 pallets and skids, while a box truck can hold 12-14, depending on their configuration and the type of goods being shipped.

Freight Class

All freight shipped within the United States and abroad is assigned a number (50-500) based on its dimensions, weight, value, density, and ease of handling. Low numbers indicate the cargo is dense and simple to move, while high numbers indicate it’s lightweight and liable to shift during transport, potentially damaging itself or other items. The system is overseen by the National Motor Freight Classification, which allows businesses and fleet managers to estimate costs and take precautions to ensure all cargo is shipped safely.

Modes of Transportation

Freight is shipped by several methods, each with its own unique cost structure. Familiarizing yourself with them helps you adapt to disruptions, such as weather or inventory shortages, in order to ensure goods reach your customers on time.

• Ocean Freight. Moves goods and commodities on ships. The slowest but least expensive way of transporting cargo. Though the majority of maritime shipping occurs on the open ocean, some travels on inland waterways, such as lakes, rivers, and canals.
• Rail Freight. The most cost-effective way to move goods on land. Like cargo ships, trains haul both raw materials and finished goods, connecting ports, cities, and manufacturing centers hundreds or even thousands of miles apart.
• Ground Freight. Ground transportation carries goods over road and highway networks and is often combined with ocean or rail transportation to transfer goods from ports and train yards to distribution or industrial centers.
• Air Freight. Offering unmatched speed and reliability, air transportation is the most expensive way to ship freight, which is why it’s normally employed only for the delivery of small shipments of critical, high-value goods.

Transportation of goods is crucial for any company that relies on domestic or international distribution chains. Choosing the right mode allows you to reach customers, coordinate deliveries, and manage inventory, in order to grow your business and expand into new markets.

Shipping Methods

There are several ways to transport freight, each suited to different distances, volumes, and timetables. Based on your shipping needs, you may require:

• Less Than Truckload (LTL). Shipments from multiple companies are consolidated onto one truck – a good option for small businesses without enough cargo to fill an entire trailer. Because costs are shared between several shippers, LTL provides significant savings, but generally involves longer transit times, as trucks have to make additional stops en route. Typical LTL freight shipments range from 150-15,000 pounds.
• Full Truckload (FTL). An ideal shipping option for cargo that’s over 15,000 pounds and large enough to fill all or most of a semi-trailer. Because FTL shipments are dedicated entirely to a single customer, there are no intermediate stops, which shortens delivery times and provides greater control over scheduling, routing, and cargo requirements.
• Partial Truckload (PTL). A method designed for shipments that are too large for LTL and too small for FTL, PTL splits costs with a small number of customers, which means lower prices and fewer delays.
• Intermodal. In many cases, multiple forms of transportation are required to deliver freight. Thanks to standardized containers, transferring cargo from truck to rail, rail to ship, and ship to truck is simple and scalable, allowing you to move large and small shipments quickly over long distances.
• Expedited. A premium shipping service for time-sensitive cargo. Commonly used for high-priority items such as pharmaceuticals, aerospace components, and disaster relief, expedited shipping is the fastest but least affordable method of transportation.

For businesses concerned about sustainability, your choice of shipping method has a direct impact on your environmental footprint. Besides reducing freight costs, companies that streamline their supply and distribution system also reduce the amount of carbon emitted per shipment.

Freight Shipping Equipment

Freight shipping relies on a wide range of containers and vehicles, designed to facilitate the safe movement and handling of high-volume cargo. According to the needs of your operation, you may require:

• Containers. Shipping containers are 20-40 feet long. Standardization allows them to be quickly transferred from ships, trains, or trucks. Though most containers are fully enclosed, open-top and flatbed containers are available to accommodate heavy and oversized objects, capable of withstanding exposure to the elements, like machinery or lumber. There are even refrigerated containers for perishable items, such as food, flowers, and medical supplies.
• Pallets and Skids. Flat platforms used to stack and secure goods during transit. Pallets have top and bottom decks, while skids have a single deck with no bottom boards. Skids have a lower center of gravity, which makes them more stable, a good choice for heavy items. By contrast, pallets are easier to lift and maneuver, ideal for lightweight cargo.
• Forklifts and Pallet Jacks. Forklifts allow workers to lift and move loads over 5,000 pounds. They also offer greater lift height and reduce operator fatigue. For small loads, pallet jacks are an affordable alternative for warehouses with limited space and ground storage.

Cranes and hoists also play a critical role in freight handling. Besides lifting and placing containers, they allow you to load and unload heavy items, such as industrial machinery and building supplies (excavators, turbines, steel beams, etc.). A common feature at ports, rail yards, warehouses, and construction sites, they increase throughput while mitigating potential injuries and damage.

Freight Shipping Rates

The size and weight of your cargo are the primary considerations when calculating shipping costs. However, there are a number of other factors that affect prices as well, most notably:

• Distance. The farther your goods have to travel, the more it will cost.
• Urgency. Expedited shipping processes require dedicated handling, special travel arrangements, and higher rates of fuel consumption, resulting in greater operational costs.
• Mode of Transport. Due to economies of scale, shipping cargo in high-capacity vehicles such as ships and trains spreads the costs over a larger volume of goods, resulting in a lower price-per-unit.
• Location. Destinations and pick up points close to transportation hubs are less costly to reach, while remote locations require more time, effort, and resources.
• Weather. Traveling during certain times of year is more hazardous than others. Rain, snow, and wind can close roads and disrupt sea lanes, leading to higher charges.
• Freight Class. Shipments with higher classifications require special handling, which generally entails additional fees.
• Fuel Surcharges. Imposed by freight companies in response to the fluctuating cost of diesel and gasoline. These charges are normally linked to national or regional fuel indexes and only adopted once the price exceeds a certain threshold. Once the price falls, the charge is dropped.

Depending on circumstances, shippers may also add accessorial fees for special freight services, such as inside or liftgate deliveries. (During an inside delivery, drivers carry freight into the building, rather than leaving it on the driveway or loading dock. Liftgate deliveries require trucks with specialized hydraulic platforms to lower goods from the trailer bed.) In many cases, these charges are not included on the original freight quote, but are added after drop-off.

Best Practices for Shipping Freight

In addition to choosing a capable and experienced freight handler, following the steps below will help your cargo reach its final destination safely and smoothly. These include:

Preparing Your Shipment

Start by assembling the items you plan to ship and consolidating them onto a pallet or cargo skid. Loose items are more likely to be damaged, so make sure they’re packed tightly and secured with either straps or shrink wrap to minimize movement. Stack all items vertically, in a consistent pattern, checking to make sure there’s no overhang. Note their condition as well, in case there is a dispute with the freight carrier. (You might even want to take pictures before they arrive.) Then measure and weigh your cargo carefully. Accurate information is essential when determining shipping rates and selecting the best mode of transportation.

Generating Labels

Shipping labels not only contain the destination address, but also the contents of the pallet or container. Instructions for safe shipping and handling may be included as well. Be sure your labels are clearly printed in English, with copies posted on all sides of the freight.

Compiling Shipping Documents

Freight cannot be picked up or delivered without the proper documentation. These forms will be collected by the carrier when they arrive and will travel with your goods all the way to their intended recipient.

• Bill of Lading. Describes the goods being shipped, as well as the names of the shipper, carrier, and consignee (the person who takes delivery and is responsible for payment). It acts as a contract, outlining the terms and conditions of shipment, and a receipt, confirming that the carrier received the goods. When shipping overseas, it’s often used to transfer ownership as well.
• Certificate of Origin. Indicates which country the shipment came from. Attached to international freight and reviewed during customs clearance, it tells border agents the shipment is legitimate and helps them determine what duties you’re obliged to pay.
• Commercial Invoice. Another document required for international shipping. It’s issued from the seller to the buyer, detailing the products sold, as well as their price, quantity, and origin.
• Customs Forms. While the information collected by customs agencies varies from country to country, they generally require a description of the freight, its value, and the purpose of shipment.

Preparing these types of documents can be complicated. To simplify the process, many shippers partner with a logistics company, which can not only draft and submit documents on your behalf, but understands the rules and regulations regarding domestic and international shipments, reducing the risk of delays or fines. What’s more, their document management systems allow you to access shipping records in real-time, for complete visibility end-to-end.

ExpressTrac Freight Forwarding

ExpressTrac organizes and manages domestic and international deliveries for businesses across the United States. We coordinate intermodal transportation for a broad range of goods and commodities, working with clients to ensure deliveries arrive safely, according to their timelines and cost constraints. Our relationships with carriers allows us to achieve an optimal balance of speed, price and reliability, while managing the complex paperwork associated with global shipping. No matter the size of your company or shipment, our knowledge and expertise provides seamless navigation from origin to destination. Contact us today for expert freight solutions tailored to your needs.