Effectively managing freight shipments is a crucial supply chain component to ensure products and components make it to their destination — particularly bulk orders and oversized items.
So what is freight shipping? And how can you incorporate it into a business plan? Here’s how to ship via freight and some best practices.
What’s freight shipping?
Freight shipping involves transporting large shipments of goods, often in bulk. The transport may include planes, trains, commercial trucks, ships, or multiple in the same journey. Usually, freight shipments go from their origin to a warehouse before distribution at the parcel level, but it varies depending on the business.
Smaller products and individual packages, like the ones people receive after dropshipping or ordering a single item online, don’t count as freight because they often go to different destinations instead of just one. Instead, these packages fall under parcel shipping.
Let’s use a jewelry business as an example. It receives bulk parts like chains, gems, and packaging materials through freight shipping. After creating the final products by hand — necklaces, bracelets, and earrings — it sends them out to individual customers via parcel shipping.
How does freight shipping work?
Once you identify your shipping needs, decide which method of transport is the most efficient and cost-effective for moving goods from sender to receiver. Consider factors like distance, freight size, and speed. You should also think about which method is the most eco-friendly to minimize waste and pollution.
Choose a carrier and coordinate the shipment. Let them know what the timeline is and any specifications for pickup and dropoff. Typically, the shipper and carrier determine the route. But if the order is urgent, coordinate and request expedited shipping.
4 benefits of freight shipping
Here’s a closer look at why freight options are often the best choice for large shipments.
1. Cost savings
Freight shipping taps into the economy of scale. While large shipments are expensive, per-unit costs decrease when buying and shipping in bulk. Instead of paying for multiple parcel shipments individually — which adds up — you pay once for a freight shipment. This is especially beneficial if your business transports large volumes of goods regularly.
2. Streamlined restocking
Freight shipping helps manage inventory more effectively, allowing for regular, large-scale restocking instead of frequent smaller deliveries. You only need to track one or a few shipments at a time instead of dozens.
3. Higher customer satisfaction
Large orders and reliable tracking means you always have the products you need. And maintaining larger inventory through freight shipping reduces stock outs and encourages customer loyalty.
4. Better efficiency
Freight shipping is more efficient than parcel or small-volume shipping. You can adjust the strategy to align with specific goals, such as reducing costs by ordering in bulk or avoiding stock outs with expedited air shipping. Whether it’s speed, cost, or volume, freight shipping methods optimize transport.
Freight shipping methods
Choose the appropriate shipping method based on your unique needs, like a cool environment for perishable goods or enough room for oddly shaped products. Here are the main freight options to consider.
Less-than-truckload (LTL)
Less-than-truckload shipping involves orders that share trailer space with other orders. You pay less when you don’t take up the whole space.
The downside of LTL is that it’s slower than full-truckload shipping because the driver has to make multiple stops — which could be 10, 20, or even more. If your cargo is at the tail end of the route, it could take an extra day or two to arrive compared to a full truckload of your product that goes straight to the destination. There’s also a higher risk of damage, as the carrier might manipulate the cargo multiple times during each trip.
Full truckload (FTL)
Full truckload shipping is a great option if an order is big enough to take up an entire semi-trailer. It means the order is the only stop on the route. This saves time and reduces the risk of damage.
That said, a full truckload is inefficient if you deal in smaller shipments or don’t need a whole trailer load of new inventory. Only use this method when there’s enough cargo to take up most, if not all, of the space.
Partial truckload (PTL)
Partial truckload is a happy medium between LTL and FTL. With this method, you still share space with other customers, but each shipment is larger, meaning the driver only has a few stops.
For instance, an LTL delivery may have 8–10 stops, whereas a PTL delivery might only involve 2–4. As a result, PTL offers a reduced risk of damage and better efficiency than LTL while providing some savings benefits compared to FTL.
Intermodal
Intermodal shipping is any delivery process that uses multiple methods of transportation. Typically, the carrier uses the cheapest method of transportation for each leg of the journey, like a truck, a train, and then another truck. This translates to considerable cost savings, but it also takes longer because it transfers the cargo multiple times and prioritizes cost over speed. This could also lead to damage.
Expedited
Expedited freight services guarantee the fastest possible delivery. They’re also the most expensive option. Expedited shipping involves dedicated vehicles — usually cargo planes — and routes, so they’re only worth it for urgent cases.
How to prepare a freight shipment
If you’re sending a large freight shipment, make sure it arrives safely at its destination by prepping accordingly. Choose the right pallet size, package cargo to avoid breaking or spoilage, and label everything clearly. This is especially important when using LTL or PTL methods because the goods might shift around during transport, increasing the risk of damage or loss.
Here are the eight steps for preparing a freight shipment order.
1. Prepare all documents
Make sure all necessary documentation, including shipping labels, bills of lading, and invoices, are accurate and complete.
You don’t want any mishaps here. Even a seemingly minor error can cause delays or lead to your freight ending up at the wrong destination. Triple-checking documents is especially important if the goods will go through customs because the process is strict.
2. Choose an appropriately sized pallet
Select a pallet size that aligns with the dimensions of your cargo and carrier specifications. This helps protect goods during transit and prevents additional fees.
3. Inspect your freight
Check for issues that could lead to damage during shipping, and address them before handing them off. Remember, you’re responsible for the goods until the carrier possesses them. Make sure they’re free of damage or defects.
4. Select a pattern
When loading goods onto a pallet, choose a stacking pattern that maximizes stability and minimizes the risk of damage, especially because light, underfilled boxes are particularly susceptible to shifting during transit. Choosing a sound stacking pattern helps prevent this.
5. Create labels
Label pallets clearly with the necessary shipping and handling information to ensure they reach their destination. At a minimum, include a label on the top of the pallet and one side. Labeling multiple sides makes it easier for carriers to identify cargo during drop-offs.
6. Secure your freight
Use straps, shrink wrap, and other materials to affix the goods to the pallet. Wrap the goods tight enough to prevent movement and reduce the risk of damage without crushing or deforming boxes.
7. Move the pallets to the pickup area
Move pallets to the pickup area, such as the loading dock. Have the goods ready to go so the carrier can quickly load the cargo and get back on the road. The carrier picks up your freight and provides a shipping invoice.
8. Photograph all pallets
Taking pictures of the pallets provides evidence of their condition at the time of pickup. If there’s a dispute, use those photos to prove the cargo was in good condition when the carrier took it.
Streamline freight inventory management with Fishbowl
Arranging freight shipping is just one part of supply chain management. If you want to create an adaptable supply chain and maximize visibility, you need an all-in-one solution like Fishbowl.
From tracking shipments to optimizing stock levels, Fishbowl is a powerful platform for managing inventory across its shipping journey. It even integrates with popular solutions like Shopify to help you better serve customers. Book a demo today to learn more.