Freight: Meaning and Types - By: Corwin Smith

Freight or cargo refers to the goods that are usually transported for commercial purposes. The modes of transport that are utilized include ship, train, van, truck and aircrafts. However, majority of inter modal long-haul cargo transport use containers for shipment of goods. The major forms of cargo are less than truckload (LTL) cargo and truckload cargo. Let us discuss them one by one.

The first category of cargo shipment is less than truckload (LTL) cargo. This category represents the greater portion of business-to-business shipments and cargo shipments. These shipments generally range between 50-7000 kg and 2.5-8.5 m in length. Moreover, the shipments are shrink-wrapped, palletized as well as packaged for a mixed-cargo environment. In addition, the LTL shippers need to provide their own packaging because LTL carriers do not provide any assistance or packaging supplies.

Air freight shipments are similar to the LTL shipments on parameters like packaging requirements and size. However, these shipments are required to move at a faster speed of 800 km/day. These shipments can be booked directly or through online marketplace services and brokers.

Truckload refers to the shipments that are greater than 7,000 kg. It may be noted that it is more economical and efficient for large shipments to use one large trailer instead of sharing space on a small LTL trailer. Parcel, LTL and express shipments are mingled with other type of shipments over a single piece of equipment. Moreover, these shipments are reloaded over different pieces of equipment during the transport. Truckload shipments generally travel in the form of exclusive shipments on trailers. Such shipments are normally delivered on the same trailer from which they are picked up.

While the LTL shipper can realize savings through brokers, online marketplace or any other intermediary rather than contracting out directly to a trucking company. Generally, brokers can settle the deals for lower rates as compared to the majority of direct dealings. However, the truckload carriers charge a rate per mile or kilometer. The rate is decided by several factors like geographical location, distance, type of equipment needed, service time needed as well as nature of products. Such shipments also receive various surcharges that are similar to those received by LTL shipments.

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