Freight Shipping Modes Explained: Types and Options

Navigating the best freight shipping options plays a crucial role in moving goods across the global economy, as businesses work to find the best combinations for their supply chain and logistics needs. When taking on this challenge, it pays to know the details of all the different freight shipping modes available to make the most informed decisions.

In addition to outlining the choices available, this blog will also address the specialized requirements of certain industries and highlight the factors influencing freight shipping rates, empowering you to make informed choices when selecting the best freight shipping modes for your business.

What Is Freight Shipping?

Freight shipping refers to the bulk movement of goods from one location to another using different modes of transportation. Goods can travel via air, sea or land a variety of distances and speeds - domestic and/or international. Freight shipments are too heavy, too large or too numerous (or a combination of the three) to travel any other way. There are also categories within freight including oversize, special, project, hazardous, temperature-controlled and more.

Regardless, once it's clear shipments fall under a freight designation, it's down to choosing a mode and carrier and/or broker who can service the origin and destination combinations a business requires. Those looking to use a combination of two or more modes (and benefit from cost and carbon savings in doing so) should target intermodal transportation services. 

Freight vs. shipping: Is there a difference?

The key difference between freight and just plain shipping is its bulk nature - with both weight and dimensions (along with quantity) factoring in. One of the most well-known and busiest package handlers - UPS - limits parcel shipping to 150 lbs. or less, while the dimension limit is 108 inches. Anything bigger must travel via freight.

Backing up a bit, while freight is used as shorthand to suggest movement as well, it primarily refers to the actual load contents - as in, carrying the freight or a freight train. Shipping conversely, describes the act of moving goods, whether it be freight shipping or parcel shipping (not to be confused with shipping two characters pairing up on a favorite tv show).

Popular types of freight modes

Freight shipping is crucial for transporting goods across the country - and the world - and there are various modes available to cater to different shipment requirements. The type of freight service selected for a particular product is contingent upon a number of variables, but there are plenty of freight shipping modes which are all popular in their own ways: full truckload (FTL), less than truckload (LTL), intermodal transportation, rail freight services, air freight services and ocean freight services. Each transportation method has its own variations built in as well.

Full truckload (FTL)

Full truckload (FTL) is ideal for large shipments that require an entire truck's 53-foot capacity. This mode offers key advantages over other methods, with both faster transit times since there are no stops or transfers and flexibility to handle any origin-destination combination.

Truckload shipping services can also use refrigerated trailers for perishable items or flatbeds for oversized loads like construction equipment. Additionally, truckload minimizes handling risks because cargo remains untouched from origin to destination. 

Pros: Faster transit times, minimal handling risks, cost effective, flexibility to handle any origin/destination combination.
Cons: Higher cost compared to domestic 53-foot intermodal, highly fragmented market. 

Less than truckload (LTL)

Less than truckload (LTL) is perfect for smaller shipments that don't need an entire trailer's space, but exceed parcel carrier limits. By consolidating multiple customers' freight into one vehicle, carriers offer competitive rates on for shippers who can't use a full trucking trailer, hence its name. 

However, LTL may take longer due to additional stops required during transport for transfer between trucks at cross-dock centers - as LTL carriers use what is called a hub-and-spoke network to drive efficiencies.

Pros: Cost-effective for smaller shipments, flexible pickup and delivery options.
Cons: Slower transit times, increased handling risks and potential damage.

Intermodal Transportation

Intermodal transportation involves using two or more transport methods (e.g., rail, trucking) within a single journey. A typical door-to-door intermodal shipment involves a short-haul (dray) truck picking up a full container at origin and bringing it to a ramp for long-haul freight rail transport. Another drayage carrier then moves the container from the destination rail ramp to its final delivery point - all booked by a single intermodal transportation service provider.

The primary benefit of intermodal transportation is that it allows businesses to leverage the strengths of each mode while minimizing their weaknesses.

Pros: Lower overall costs, reduced environmental impact, improved security through containerization.
Cons: Potential delays during transfer points, lanes must be a good fit.

Rail freight services

For businesses seeking efficient and cost-effective shipping solutions, rail freight services offer a compelling alternative to traditional truckload transportation. Using rail logistics is particularly advantageous for long-distance shipments or those involving large volumes of particular goods.

Besides distance and volume considerations, certain types of cargo are best suited for train transport. For instance, commodities such as coal, grain, and other bulk items often move by rail due to their weight and size.

Pros: The per ton-mile cost, fuel-efficiency and sustainability.
Cons: Less flexible than intermodal rail, only a fit for certain goods and situations.

Air freight services

Air freight services involve transporting goods via airplane rather than by truck or train. This method of transportation is typically used for high-value or time-sensitive shipments that need to reach their destination quickly. However, because of its higher cost compared to other modes of transportation, it's important to consider whether the benefits outweigh the additional expense.

Pros: Speed, safety and flexibility, especially useful for critical shipments.
Cons: Cost, limited routes and capacity.

Ocean freight services

Shipping products using ocean freight services can be a cost-effective option for companies looking to transport large quantities of goods. Ocean shipping is the most efficient transportation mode, largely because of the sheer capacity of a typical cargo ship. Boats can carry virtually any type of freight of any size, though they primarily transport shipping containers (which can also be used domestically for ocean container intermodal).

Pros: Cost-effective and eco-friendly for large product quantities.
Cons: Requires planning, as transit time is often a month or more. Susceptible to delays due to weather, port congestion and geopolitical issues.

How to choose the right freight mode

Choosing the right freight mode is a critical business decision - as it has a direct bearing on shipping and logistics costs, transit times, reliability and sustainability. That's why it's important to consider a number of elements when deciding on a transportation strategy, from type of shipment to packaging, and of course, time and distance.

Shipment size and weight

The size and weight of a shipment both make a difference when it comes to which modes are best to handle the load. Smaller, lighter shipments may rule out full truckload, rail or intermodal, while large, heavy ones don't make sense for LTL or air freight.

Shipment type

Shipment type - or the nature of the product - is another factor to weigh. Perhaps a shipment is fine for a normal dry van or container, or perhaps it involves hazardous materials, has temperature-control requirements, is high-value or fragile. In those cases, products require specialized handling, marking and insurance during transit - and not all freight modes will necessarily work.

Packaging requirements

Packaging requirements must be considered for any freight mode. Some items may need specific packaging like pallets, crates, barrels or slip sheets due to their shape, consistency, fragility or warehouse requirements. If using intermodal, it's important to additionally consider blocking and bracing to counteract harmonic vibration from the rail.

Delivery timeframes

Most freight will follow some type of schedule, which means it's possible to plan when to ship accounting for whichever mode is used. However, urgent deliveries might necessitate expedited shipping options via express truck domestically or air cargo instead of slower ground-based or water-based methods.

Distance to travel

The distance a shipment travels can lean a freight mode decision one way or another. While trucks can work for any distance, rail and intermodal shine the most when the haul is longer. Additionally, intermodal works best when rail ramps are not too far from both the origin and destination. If the shipment is super long-haul, then ocean and air become the only options.

What factors affect freight shipping rates?

Freight shipping rates are hardly set in a vacuum. In fact, they're a product of a confluence of market factors that constantly push and pull on pricing. But there are some constants that directly affect calculating freight costs, including where shipments are going, the type of shipment and fuel prices.

Shipping capacity

The overall size and weight of a shipment play a significant role in determining the cost of freight transportation. Carriers typically charge based on either dimensional weight (the space goods occupy) or actual weight (the physical mass), whichever is greater. As such, it's crucial to accurately measure both dimensions and weight before budgeting for freight rates to include.

Origin and destination

The distance between origin and destination directly affects fuel consumption, driver hours, equipment wear-and-tear, and a number of other freight logistics considerations. Consequently, longer distances generally result in higher shipping costs. Beyond simple distance though, remote locations may require specialized equipment or additional time for delivery - further increasing expenses.

Fuel surcharges and accessorial charges

Rising fuel prices often lead carriers to implement surcharges for customers. These fees vary depending on market conditions but can significantly impact overall shipping costs if not accounted for properly during rate comparisons. Additionally, accessorial charges cover extra services provided by carriers beyond standard pickup/delivery tasks - such as liftgate usage or inside deliveries.

Freight classification system

The U.S. trucking industry operates under a standardized classification system called National Motor Freight Classification (NMFC). This system assigns a class to each type of product based on factors like density, stowability, handling and liability. Higher classes generally correlate with higher shipping rates due to increased difficulty or risk associated with transporting the goods.

Cargo type

Freight shipping covers just about any cargo type, but rates are hardly one-size-fits-all. Simple, non-fragile dry goods that fit neatly in standard containers or trailers tend to cost less, while oversize/overweight products, or those that require special handling, tend to bring with them higher charges. Reduce freight costs by finding the best mode for your cargo.

Types of freight shipping goods

Whether they be raw materials, manufacturing components or finished products, freight shipping is required to move many types of goods on a large scale. While multiple modes can handle most items, some require specialized carriers due to their nature or value, but the bottom line is, the variety of goods shipped fall under the commonly used abbreviation FAK - freight of all kinds, including (but hardly limited to):

• Food and beverage
• Apparel and shoes
• Medical supplies
• Nutraceuticals
• Consumer goods
• Bulk paper and packaging
• Automotive
• Steel
• Industrial products
• Nursery stock
• Raw materials

Included within these goods are categories that require special treatment, like hazardous materials (HAZMAT), perishable products and high-value commodities. Every served industry has its own shipping challenges, but every industry also needs reliable freight transportation to keep the line moving.

Most common freight shipping documents

Understanding all the necessary freight shipping documents is essential for any company involved in the transportation of goods. These documents serve as a contract between the shipper and carrier, outline what's being shipped, provide instructions for handling and delivery and are used to resolve any disputes or issues related to transport.

Bill of Lading (BOL)

The Bill of Lading (BOL) is perhaps the most crucial document in freight shipping. It acts as a receipt issued by a carrier acknowledging they have received specified goods from the shipper. The BOL also outlines terms for transporting these items to their destination. There really is no shipment without one.

Packing list

A packing list provides a detailed documentation of all goods packed into a container or trailer. It lists exactly what is included within each shipment - such as item numbers, descriptions, quantities and weights. This information helps carriers handle shipments correctly and aids customs officials with inspections if necessary.

Commercial invoice

A commercial invoice is a legal document that provides critical data about a transaction including seller/buyer details, description and value of goods, etc., which can be important for customs purposes when shipping internationally. Commercial invoices are in fact required for the export and import clearance process.

Freight bill

The freight bill is essentially an invoice from the carrier detailing all charges related to a shipment – like pickup/delivery fees or fuel surcharges among others. This document is also known as the carrier’s invoice. 

Cargo Insurance Certificate

If a shipper opts to purchase additional insurance coverage beyond what’s typically offered by carriers through their limited liability policies; the cargo insurance certificate will provide the proof required in a cargo claim. A specific cargo insurance policy may also be necessary when cargo insurance is not offered through the carrier.

Certificate of Origin

The Certificate of Origin (CO) is key for businesses involved in international trade. It certifies the country where goods were manufactured which impacts duties and taxes. The CO also verifies that the goods meet the requirements of any applicable trade agreements, such as the U.S.-Mexico-Canada Agreement (USMCA) and its predecessor NAFTA - and whatever comes next.

The role of freight shipping in global supply chains

Understanding freight shipping's impact in today's interconnected supply chain market is essential for any business looking to optimize its logistics processes. Raw materials are sourced globally while finished products reach customers across continents. Freight shipping is the backbone of these global supply chains, enabling businesses to transport large volumes of goods in a cost-effective manner.

It plays a crucial role by providing economies of scale, reliability, flexibility, and risk mitigation. Navigating supply chains efficiently and effectively can lead to better quality products and services - and thus a competitive advantage for businesses who take their freight shipping operations seriously.

Unsure of your best freight options? InTek can help

By carefully considering freight options among variables such as shipment size and weight, shipping capacity, distance to travel, origin and destination, additional charges and classification, companies can make informed decisions when selecting modes, carriers and services - ultimately reducing expenses and improving overall efficiency within their organization. It's clear though, that there is much to consider.

That's why a partner well-versed in the industry like InTek Logistics can be such a big help. We can assist in setting priorities, planning a strategy and executing operations that are right for your particular business needs. And while getting started with intermodal may seem daunting, we can make that easy, too - allowing you to reap its cost, capacity and carbon benefits.