What is Freight?
Freight refers to goods or cargo transported in bulk by truck, train, ship, or aircraft. Freight shipping is the process of transporting these goods from one location to another, typically for commercial purposes.
Unlike parcel shipping (packages under 150 lbs), freight shipping handles larger, heavier shipments that require specialized handling, equipment, and pricing structures. Freight can range from a few pallets to entire truckloads or container ships full of goods.
Freight shipping moves approximately 72% of all goods transported in the United States, making it the backbone of the American economy.
Types of Freight Shipping
Understanding the different types of freight shipping helps you choose the most cost-effective and efficient method for your needs:
Less-Than-Truckload (LTL)
LTL shipping is ideal when your shipment doesn't fill an entire truck. Your freight shares space with other shippers' goods, and you only pay for the space you use. Key characteristics:
- Shipments typically between 150-15,000 lbs
- 1-10 pallets on average
- Pricing based on freight class, weight, and distance
- Multiple stops along the route (hub-and-spoke network)
- Transit times of 1-5 days typically
Full Truckload (FTL)
FTL shipping dedicates an entire truck to your shipment. It's the best choice for large shipments or when you need faster, more direct service:
- Shipments over 15,000 lbs or 10+ pallets
- Direct point-to-point transportation
- Faster transit times with no intermediate handling
- Lower risk of damage (no co-loading)
- Pricing based on distance (per mile) and equipment type
Parcel Shipping
For smaller shipments under 150 lbs, parcel carriers like FedEx, UPS, and USPS offer convenient options with extensive networks and fast delivery times.
Intermodal Shipping
Intermodal combines multiple transportation modes (truck, rail, ship) using standardized containers. It's cost-effective for long distances and reduces carbon emissions.
Air Freight
The fastest option for time-sensitive shipments, air freight is ideal for high-value goods or urgent deliveries despite higher costs.
Ocean Freight
International shipping by sea is the most economical method for large volumes. Options include:
- FCL (Full Container Load): You book an entire container
- LCL (Less than Container Load): Share container space with others
How Freight Costs are Calculated
Freight pricing can be complex, with multiple factors affecting the final cost:
Weight and Dimensions
Carriers calculate both actual weight and dimensional weight (based on package size), charging whichever is greater. This prevents light but bulky items from taking up valuable truck space at low rates.
Freight Class (LTL)
LTL shipments are assigned a freight class (50-500) based on density, stowability, handling requirements, and liability. Higher classes mean higher rates.
Distance
The distance between origin and destination directly impacts cost. Longer distances mean higher fuel costs and driver time.
Accessorial Charges
Additional services incur extra fees:
- Liftgate service
- Residential delivery
- Inside delivery
- Appointment scheduling
- Hazmat handling
- Limited access locations
Fuel Surcharge
A variable charge that fluctuates with diesel prices, typically calculated as a percentage of the base rate.
Choosing the Right Freight Method
Selecting the optimal shipping method depends on several factors:
Consider LTL When:
- Shipment is 150-15,000 lbs
- You have 1-10 pallets
- Transit time of 1-5 days is acceptable
- Cost efficiency is a priority over speed
Consider FTL When:
- Shipment exceeds 15,000 lbs or 10 pallets
- You need faster, guaranteed delivery
- Cargo is fragile or high-value
- You want to avoid intermediate handling
Consider Intermodal When:
- Shipping long distances (1,000+ miles)
- Cost is more important than speed
- Shipment can accommodate 5-7 day transit
- Sustainability is a priority
Key Freight Documentation
Proper documentation is essential for smooth freight operations:
- Bill of Lading (BOL): The contract between shipper and carrier
- Commercial Invoice: Required for international shipments
- Packing List: Detailed contents of the shipment
- Proof of Delivery (POD): Confirms successful delivery
- Certificate of Origin: For international trade compliance
Pro Tips for Freight Shipping
- Get multiple quotes: Rates vary significantly between carriers. Use a platform like SupplySense 360 to compare options instantly.
- Classify correctly: Incorrect freight class leads to re-weighs and additional charges.
- Optimize packaging: Efficient packaging reduces dimensional weight and protects cargo.
- Book in advance: Last-minute shipments cost more, especially for FTL.
- Track shipments: Real-time visibility helps you proactively manage exceptions.
- Build carrier relationships: Consistent volume with reliable carriers leads to better rates and service.
Conclusion
Freight shipping is a critical component of modern commerce. Understanding the different methods, cost factors, and best practices enables businesses to make informed decisions that optimize both cost and service levels.
Whether you're shipping a few pallets via LTL or managing complex multi-modal supply chains, the right knowledge and tools make all the difference.