Freight shipping is the backbone of the eCommerce landscape, driving the movement of goods from their point of origin to their ultimate destination. As eCommerce continues to expand rapidly, it drives the need for efficient and scalable logistics solutions, ensuring customer satisfaction.
Today, shipping plays a crucial role in determining customer satisfaction. Businesses not only have to meet the increasing demand for fast delivery but also ensure cost-efficiency and the safe handling of products. This, as a result, has led to the rise of specialised freight shipping services that handle larger shipments more effectively, optimising routes and minimising delays.
What is Freight Shipping
Freight shipping is the process of delivering large shipments from one location to another using different modes of transportation, such as road, rail, air, or sea. It is commonly used in both domestic and international shipping, and unlike parcel shipping, freight typically involves large shipments that require significant logistics and special handling.
A freight shipment is different from a parcel shipment. Parcel shipments are small packages that weigh up to 68 kg (this may vary from carrier to carrier). Any shipment above is usually considered freight and, therefore, requires big transportation vehicles.
What Qualifies as a Freight Shipment
People often use parcel and freight as interchangeable terms. However, every shipment is not always a freight shipment. A freight shipment weighs more than 150 pounds and should be 30x30x30 inches.
In freight shipping, items are either floor-loaded or palletised. Floor-loaded shipments are usually handled manually, where items are placed directly on the floor of the truck or container. On the other hand, palletised shipments involve loading goods onto wooden or plastic pallets, which are then handled using forklifts. Palletised shipments offer additional protection and are easier to load, unload, and transport, making them a common choice for freight shipments.
Modes of Freight Shipping
Different shipments require different modes and spaces for shipping. This is why freight shipping has different modes, which vary on the following basis:
- Less than Truckload (LTL)
Less than truckload, or LTL, is used for small volumes of shipments, usually between 1 to 6 pallets. In this model, different sellers share the cost of one truck based on how much space their shipments acquire. Since the freight from different sellers is consolidated into a single truck, these pallets are further transferred to different trucks in order to reach their final destination if needed.
- Full Truckload (FTL)
Full truckload, as the name suggests, is when one seller requires an entire transporter. This is booked for delivering around 24-26 pallets from their pickup location to their final destination without multiple transfer points. As a result, FTL shipping minimises the risk of damage and reduces transit times.
- Partial Truckload (PTL)
Partial truckload shipments lie between LTL and FTL and are used to transport 6-12 pallets. This model helps save more money than FTL and requires less shipment handling in comparison to LTL. Therefore, with this, a seller can get his shipments to their final destination faster.
- Intermodal
Intermodal shipment model is when different modes of transport are used to deliver freight from its place of origin to the destination. By leveraging the strengths of different modes, intermodal shipping provides a flexible and efficient way to move freight over long distances. These modes can include trains, ships, flights, or trucks to ensure smooth transitions between different vehicles while optimising costs and delivery times.
- Expedited
For businesses requiring urgent delivery, expedited freight shipping is the go-to solution. This model prioritises speed, using faster transportation modes such as planes and dedicated trucks to ensure that freight reaches its destination as quickly as possible. Expedited shipping is costlier than other models due to its time-sensitive nature, but it is an invaluable option for critical shipments where delivery speed is a top priority.
Benefits of Freight Shipping
Freight shipping is a cost-effective and faster way of transporting shipments from one place to another. Let’s find out more about the benefits of freight shipping for sellers:
1. Cost-Effective for Bulk Shipments
Freight shipping is a much more economical option for businesses that need to transport large volumes of goods. When dealing with large orders, the cost of parcel shipping can go up rapidly.
Freight shipping, particularly models like Less Than Truckload (LTL), allows businesses to share transportation costs with others, therefore reducing overall shipping expenses. Additionally, Full Truckload (FTL) shipments ensure that you can optimise shipping costs when sending large shipments, as you are paying for an entire truck dedicated to your goods.
2. Scalability
As your business grows, so does the need to manage and deliver larger volumes of goods. Freight shipping services offer scalability by providing the option to transport different shipment sizes. This allows businesses to scale their operations without worrying about logistical limitations.
The use of intermodal shipping options (road, rail, sea, and air) further increases scalability, ensuring that your business can adjust to fluctuating demand, seasonality, and expansion into new markets.
3. Faster and More Efficient Shipping
Freight shipping often involves direct routes that minimise handling and transit times. Models like FTL and expedited shipping are designed explicitly for faster delivery. With these options, businesses can deliver large orders quickly and efficiently, reducing delays and enhancing customer satisfaction.
The ability to use a single mode of transport or a combination of the fastest transport methods ensures that goods reach their destination in the shortest possible time.
4. Reduced Risk of Damage
Freight shipments are typically packed onto pallets. These pallets usually have extra padding to ensure the utmost safety of the shipments during transportation. By using these pallets, businesses minimise the risk of damage, as shipments are less likely to shift or be mishandled compared to individual parcel shipments.
Also, in the case of FTL, the entire truck is dedicated to one company’s goods, which reduces the need for frequent unloading and reloading at different stops, further reducing the chances of damage.
5. Greater Flexibility in Transportation Options
With freight shipping, sellers get access to multiple modes of transportation, such as road, rail, air, and sea, enabling businesses to choose the most efficient and cost-effective options based on their needs.
For example, intermodal freight shipping combines different modes to reduce costs and increase efficiency. This flexibility ensures that businesses can select the best transportation method depending on factors like delivery speed, destination, and shipment size.
6. Enhanced Supply Chain Visibility
Modern freight shipping services provide advanced tracking pages, offering businesses better visibility of the status of their shipments. This level of transparency allows companies to monitor the entire logistics process in real-time.
Eventually, it enables them to predict potential delays, reroute shipments if necessary, and keep customers updated on the progress of their deliveries. Improved supply chain visibility leads to better decision-making and ensures a smoother delivery process.
Freight Shipping Pricing
Freight shipping costs can vary greatly, depending on a range of factors. By understanding the key pricing determinants, you can better anticipate shipping costs and plan your logistics budget accordingly. Below are some of the major factors influencing freight shipping prices:
1. Weight and Dimensions
Freight rates are typically based on the weight and dimensions of the shipment. Carriers calculate the cost per kg or pound, and they also consider the space the freight takes up in the transport vehicle. Rates are charged on the basis of whichever is higher: the dead weight or the volumetric weight (LxBxH/5000).
2. Distance
The farther your freight has to travel, the higher the shipping cost. Domestic shipments are generally more affordable than international ones and have to travel longer routes. Additionally, shipments requiring multiple modes of transport (i.e., road, rail, or sea) will increase the price.
3. Mode of Transportation
The type of transportation, whether road, rail, sea, or air, has a major effect on freight shipping pricing. Air freight is typically the most expensive due to the speed and convenience it offers, while sea and rail transport, though slower, are usually more cost-effective for large volumes.
4. Freight Classification
For domestic shipping, freight shipments are often categorised into classes based on factors like density, stability, handling, and liability. Higher freight classes usually lead to higher rates. In international shipping, customs duties, taxes, and fees may also affect the overall pricing.
5. Fuel Surcharges
Freight carriers often apply fuel surcharges to offset fluctuating fuel prices. This surcharge can vary from month to month, depending on the cost of diesel or jet fuel, impacting the final shipping price.
Understanding these factors can help you manage and predict freight shipping costs more effectively, giving you greater control over your logistics budget.
Best Practices for Freight Shipping in eCommerce
Ensuring the smooth transit of freight shipments is critical to maintaining efficiency and customer satisfaction. By following best practices, businesses can avoid delays, reduce costs, and minimise the risk of damaged goods. Here are some key best practices to keep in mind:
1. Optimise Packaging
Using the right packaging is crucial to prevent damage during transit and to avoid any weight discrepancy. Ensure that items are securely packed, ideally using pallets or crates to safeguard goods. Efficient packaging can also help reduce shipping costs by optimising space within the freight vehicle.
2. Choose the Right Freight Class
Accurately classifying your shipment is essential to avoid unexpected charges. Review your shipment’s dimensions, weight, and handling requirements to determine the correct freight class. Misclassifications can lead to delays and additional fees.
3. Plan Shipments in Advance
Freight shipments can take time, especially for international deliveries. Planning shipments ahead allows you to take advantage of lower-cost shipping options, like sea or rail, and ensures that you avoid the higher costs of expedited services.
4. Track Shipments in Real-Time
Using freight tracking technology helps keep your shipments visible throughout their journey. Real-time tracking allows you to monitor the progress of your shipment, provide updates to customers, and anticipate potential delays.
5. Work with a Reliable Freight Partner
Building a relationship with a reliable freight shipping partner ensures consistency and trust in your supply chain. A good partner will provide personalised service, efficient shipping options, and technology for better tracking and management of shipments.
By adopting these best practices, businesses can streamline their freight shipping operations, improve cost efficiency, and offer better service to customers.
How to Find the Best Freight Shipping Partner
Choosing the right freight shipping partner is crucial for ensuring that your logistics operations run smoothly, cost-effectively, and with minimal delays. Here are five key factors to consider when evaluating potential freight shipping partners:
1. Experience and Expertise
A freight shipping partner with years of experience in handling various types of shipments, modes of transportation, and logistical challenges is invaluable. Experienced companies are more trained at navigating complexities such as customs clearance, international regulations, and multi-modal transportation.
They can also offer valuable insights into optimising routes and reducing costs. Always look for partners with a solid track record in your specific industry to ensure they understand your unique shipping needs.
2. Comprehensive Service Offerings
A strong freight shipping partner should offer a wide range of services to accommodate your specific shipping requirements. These services could include different shipping models (LTL, FTL, PTL, intermodal, and expedited) and specialised handling for fragile or temperature-sensitive goods.
By working with a company that provides diverse services, you gain the flexibility to scale your logistics operations or switch between shipping modes based on your current needs, ensuring seamless delivery processes.
3. Strong Network and Coverage
The partner you choose should have a broad and reliable logistics network. This includes access to different transportation modes (road, rail, air, and sea), as well as a wide range of destinations, both domestically and internationally.
A robust network ensures faster delivery times and fewer delays, especially for international shipments. Additionally, a shipping partner with a strong presence in key regions allows for more efficient route planning, reducing transit times and enhancing delivery performance.
4. Technology and Tracking Capabilities
Real-time tracking and visibility into your shipments have become the need of the hour. The best freight shipping partners use advanced technology, such as GPS tracking, cloud-based systems, and AI-powered logistics software, to provide detailed tracking information.
This ensures that you and your customers can monitor the status of shipments, predict potential delays, and adjust logistics strategies as needed. A partner that leverages cutting-edge technology also helps improve supply chain transparency and optimise shipment routes.
5. Customer Support and Responsiveness
Customer service is a critical factor in freight shipping, especially when unexpected issues arise. The right partner should have a responsive and dedicated support team that can assist with shipment queries, resolve problems, and provide updates in a timely manner.
Whether it’s handling urgent changes, clarifying customs procedures, or rerouting shipments, excellent customer service ensures smoother operations and provides peace of mind. Be sure to assess the partner’s ability to offer personalised support, as this can significantly impact your overall logistics experience.
Tying It All Together!
Freight shipping plays a vital role in the eCommerce ecosystem, offering businesses efficient ways to transport bulk shipments both domestically and internationally. From understanding the different freight models (LTL, FTL, PTL, intermodal, and expedited shipping) to selecting the best partner for your business, we have discussed it all.
By leveraging freight shipping, companies can reduce costs, improve scalability, and ensure timely deliveries. However, finding the right logistics partner who offers freight shipping and more requires careful consideration of their experience, network, technology, and customer support. Making informed decisions in these areas can dramatically improve your overall logistics strategy and customer satisfaction. Enhance your freight shipping process and ensure seamless logistics by exploring solutions that align with your business needs.
