What is Freight?
Van or Truck Cargo
There are many firms which transport
all types of cargo, ranging from letters to houses to cargo containers. A good
example of road cargo is supermarket stock, as these require deliveries every
day to keep the shelves stacked with goods for sale. Retailers of all kinds rely
upon delivery trucks, be they full size semi trucks or smaller delivery vans.
Freight is a term used to classify
the transportation of cargo and is typically a commercial process. Items are
usually organized into various shipment categories before they are transported.
This is dependent on several factors:
-
The type of item being carried,
i.e. a kettle could fit into the category 'household goods'.
-
How large the shipment is, both in
terms of item size and quantity.
-
How long the item for delivery
will be in transit.
Shipments are typically categorized
as household goods, express, parcel, and freight shipments.
Furniture, art, or similar items are
usually classified as “household goods” (HHG).
Very small business or personal
items like envelopes are considered “overnight express” or “express letter”
shipments. These shipments are rarely over a few pounds, and almost always
travel in the carrier’s own packaging. Service levels are variable, depending on
the shipper’s choice. Express shipments almost always travel some distance by
air. An envelope may go USA coast to USA coast overnight or it may take several
days, depending on the service options and prices chosen.
Larger items like small boxes are
considered “parcel” or “ground” shipments. These shipments are rarely over 100
pounds, with no single piece of the shipment weighing more than about 70 pounds.
Parcel shipments are always boxed, sometimes in the shipper’s packaging and
sometimes in carrier-provided packaging. Service levels are again variable; but
most “ground” shipments will move about 500-700 miles per day, going coast to
coast in about four days depending on origin. Parcel shipments rarely travel by
air, and typically move via road and rail. Parcels represent the majority of
business-to-consumer (B2C) shipments.
Beyond HHG, express, and parcel
shipments, movements are termed “freight shipments.”
Less-than-truckload (LTL) freight
“Less than truckload” (LTL) cargo is
the first category of freight shipment, and represents the majority of “freight”
shipments and the majority of business-to-business (B2B) shipments. LTL
shipments are also often referred to as "motor freight" and the carriers
involved are referred to as "motor carriers". LTL shipments range from 100
pounds to about 15,000 pounds, and the majority of times they will be less than
100" wide or 28’ long. The average single piece of LTL freight is 1,200 pounds
and the size of a standard pallet. Long freight and/or large freight are subject
to "extreme length" and "cubic capacity" surcharges. Trailers used in LTL can
range from 28' to 53'. The standard for city deliveries is usually 48'. In tight
and residential environments the 28' trailer is used the most. The shipments are
usually palletized, shrink-wrapped and packaged for a mixed-freight environment.
Unlike express or parcel, LTL shippers must provide their own packaging, as LTL
carriers do not provide any packaging supplies or assistance. However, crating
or other substantial packaging may be required for LTL shipments in
circumstances that require this criteria.
Truckload (TL) freight
In the United States of America,
shipments larger than about 15,000 pounds are typically classified as
“truckload” (TL), given that it is more efficient and economical for a large
shipment to have exclusive use of one larger trailer rather than share space on
a smaller LTL trailer. The total weight of a loaded truck (tractor and trailer,
5-axle rig) cannot exceed 80,000 pounds in the U.S. In ordinary circumstances,
long-haul equipment will weigh about 35,000 pounds; leaving about 45,000 pounds
of freight capacity. Similarly a load is limited to the space available in the
trailer; normally 48 or 53 feet long and about 100 inches wide and 106 inches
high. While express, parcel, and LTL shipments are always intermingled with
other shipments on a single piece of equipment and are typically reloaded across
multiple pieces of equipment during their transport, TL shipments usually travel
as the only shipment on a trailer and TL shipments usually deliver on exactly
the same trailer as they are picked up on.
Often, an LTL shipper may realize
savings by utilizing a freight "broker," online marketplace, or other
intermediary instead of contracting directly with a trucking company. Brokers
can shop the marketplace and obtain lower rates than most smaller shippers can
directly. In the Less-than-Truckload (LTL) marketplace, intermediaries typically
receive 50% to 80% discounts from published rates, where a small shipper may
only be offered a 5% to 30% discount by the carrier. Intermediaries are licensed
by the DOT and have requirements to provide proof of insurance.
Truckload (TL) carriers usually
charge a rate per mile. The rate varies depending on the distance, geographic
location of the delivery, items being shipped, equipment type required, and
service times required. TL shipments usually receive a variety of surcharges
very similar to those described for LTL shipments above. In the TL market, there
are thousands more small carriers than in the LTL market; so the use of
transportation intermediaries or “brokers” is extremely common.
Another cost-saving method is
facilitating pickups or deliveries at the carrier’s 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.
Shipping experts optimize their
service and costs by sampling rates from several carriers, brokers, and online
marketplaces. When obtaining rates from different providers, shippers may find
quite a wide range in the pricing offered. If a shipper uses a broker, freight
forwarder, or other transportation intermediary, it is common for the shipper to
receive a copy of the carrier's Federal Operating Authority. Freight brokers and
intermediaries are also required by Federal Law to be licensed by the Federal
Highway Administration. Experienced shippers avoid unlicensed brokers and
forwarders; because if brokers are working outside the law by not having a
Federal Operating License, the shipper has no protection in the event of a
problem. Also shippers normally ask for a copy of the broker's insurance
certificate and any specific insurance that applies to the shipment.
Source:
Wikipedia
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