Inexperienced and first-time small business owners might be confused by the process of freight shipping. As with everything you don’t have experience with, the freight shipping business appears complicated and risky. However, this is not the case. This guide is here to tell you everything you wanted to know about the process – here are the most common freight shipping questions answered. They will help you better understand in what way freight is delivered to a destination, which can be very useful information in case you need to relocate your business overseas.
Are parcel and freight the same thing?
No, there are several differences. Parcels are packages that are usually quite lightweight – less than 75 pounds. Also, they are packed separately and have unique labels. On the contrary, freight is a more bulky shipment – usually heavier than 150 pounds, and it is packed in boxes and on palettes.
What are the main methods of freight shipping?
There are three types of freight shipment:
- Ocean freight is transporting goods by water– cargo is transported by vessels, packed in special containers.
- ground freight -if you need to send or receive a package with minimum costs, ground shipping is the best option. For example, sending a package to NYC is much more cost-effective if you’re using this method. The NYC-based experts can assist you and provide you with all the necessary information about your shipment.
- air freight or air cargo is the method of shipping goods through an air carrier. It is the fastest shipping method and ensures a package can arrive anywhere in the world.
What are LTL and TL freight?
The difference between LTL and TL shipments is quite simple. LTL or less-than-truckload shipments are considered freight as they are larger than parcels. However, they don’t take up the whole truck space. That’s why they are combined with other shipments. On the other hand LT or truckload shipments occupy the whole truck and they weigh from 15,000 to even 45,000 pounds. As there is one load that is not combined with others, these shipments have sooner delivery dates.
Do you need to have a bill of lading?
Absolutely. The bill of lading (BoL) gives all the information about your shipment. It includes all the details about the shipment and serves as a receipt and a kind of contract between the shipper and the carrier. It is important to understand everything about this document and make sure your shipment is protected.
How do you calculate the fees?
This is probably the most confusing of all freight shipping questions. If you ask Movage Moving NYC competent professionals, they will tell you that the rates are calculated in a special way, and they depend on several factors. However, there are a couple of shipping options that can give you an idea of how to calculate the budget for your shipment:
- Truckload (TL) rates are based on the distance, in a per-mile amount. There are also possible fuel surcharge fees, as well as driver assistance.
- Less than Truckload (LTL) rates are affected by the freight class and may include additional services such as special delivery time.
- Flatbed rates are based on the weight of the shipment, but also mileage and equipment necessary to deliver it.
What’s an NMFC number?
The NMFTA created a classification system for different types of freight. This is important to create standardized fees for each of the classes. Well, every shippable product has an NMFC number, which tells carriers and shippers what class the product belongs to. This way they can determine the weight, dimensions and there factors to come up with the proper fee.