Freight Shipping 101: Everything You Need to Know
Freight shipping is a process of moving goods from one place to another through air, water, or land. It involves various stakeholders, including shippers, carriers, freight brokers, and third-party logistics providers. If you are new to the world of freight shipping, here is everything you need to know.
Modes of Transportation
There are three primary modes of transportation for freight shipping: air, ocean, and land. Air transportation is the fastest and most expensive mode, suitable for high-value and time-sensitive shipments. Ocean transportation is the slowest and cheapest mode, suitable for large and non-perishable shipments. Land transportation is the most flexible mode, suitable for both short and long distances.
Freight Classes
The National Motor Freight Traffic Association (NMFTA) has standardized 18 freight classes based on four factors: density, stowability, handling, and liability. The lower the class number, the higher the density of the shipment, and the lower the freight rate. The higher the class number, the lower the density of the shipment, and the higher the freight rate.
Freight Documents
Freight shipping involves various documents, including bills of lading, commercial invoices, packing lists, customs declarations, and certificates of origin. These documents contain crucial information about the shipment, such as the shipper and consignee details, the commodity and quantity, the value and weight, and the terms and conditions of the shipment.
Freight Rates
Freight rates depend on several factors, such as the mode of transportation, the distance, the weight and volume, the freight class, the origin and destination, the fuel surcharges, and the market conditions. Freight rates can fluctuate due to supply and demand, weather disruptions, fuel price changes, and regulatory updates.
Freight Insurance
Freight insurance is a protection against loss or damage to the shipment during transportation. Shippers can purchase freight insurance from their carriers or third-party insurance providers. The coverage can vary based on the type of goods, the mode of transportation, the value of the shipment, and the deductibles.
The market for Freight Shipping 101: Everything You Need to Know is constantly evolving due to global trade patterns, technology advances, environmental regulations, and geopolitical risks. However, the basics of freight shipping remain the same – finding the right mode, classifying the shipment, documenting the process, negotiating the rates, and insuring the goods. With the right knowledge and resources, anyone can navigate the world of freight shipping.