What is Freight Shipping: Its Definition and How it Works

Freight shipping is the backbone of global trade, allowing businesses to move large quantities of goods efficiently across cities, countries, and even continents. But what is freight?

This guide explains everything you need to know about it. We will discuss the freight definition, how it works, the different types, and the factors that affect its cost.

Key Takeaways

• Freight shipping involves transporting large quantities of goods via land, air, or sea.
  
  
• It differs from regular parcel shipping by focusing on bulk, weight, and logistics coordination.
  
  
• Factors like distance, weight, and transportation mode affect freight rates.

Explaining Freight Meaning

The term freight refers to goods transported in bulk by truck, train, ship, or aircraft. Unlike small parcel shipments, it typically involves pallets or containers. These shipments require specialized handling, documentation, and transport arrangements.

Freight vs Cargo

It's common to see the words freight and cargo used interchangeably, but they don't mean exactly the same thing.

One thing to remember, freight generally refers to goods moved by land. Meanwhile, cargo usually applies to goods shipped by air or sea. Freight also includes the cost and process of transportation. As for cargo, the focus is more on the goods themselves.

Freight vs Shipping

Have you ever wondered whether freight and shipping are the same? The difference between these two lies in the scale and method.

The term shipping covers all forms of transporting goods, from small parcels to bulk freight. However, a freight shipment specifically deals with large, heavy, or high-volume deliveries. It typically requires specialized logistics coordination and transport modes.

Similar Read: Difference Between Cargo vs Shipping: A Simple Guide for Sellers

Different Types of Freight

This option isn't one-size-fits-all. It varies depending on some factors, such as:

• Transportation of goods
• Items shipped
• Urgency of the shipment

Understanding the different types helps businesses choose the most efficient and cost-effective method. Here are some of the types of freight shipping:

By Mode of Transportation

A carrier provides different freight shipping services through several transportation methods, each with its own advantages. Let's discuss some of the most common freight shipping methods:

• Road (FTL or LTL). Road freight is one of the most common and flexible transportation modes. It includes full truckload (FTL) and less than truckload (LTL). FTL is when one shipment fills an entire truck. It is ideal for large or high-volume deliveries. On the other hand, LTL refers to multiple smaller shipments sharing a truck, helping businesses save on costs.
  
  
• Rail. Rail freight transportation is most suitable for moving heavy goods or raw materials over long distances. It costs less and is more environmentally friendly. The downside, however, is that it may take longer than road or air transport.
  
  
• Air. Air freight delivery is the fastest delivery method, perfect for urgent or high-value shipments. But it's more expensive and limited by size and weight restrictions.
  
  
• Ocean. Ocean freight is the most cost-effective way to ship large quantities of goods internationally. It's ideal for bulk, non-urgent items, though transit times can take weeks.
  
  
• Intermodal. Intermodal freight combines two transportation methods to maximize efficiency and minimize costs while maintaining flexibility.

Type of Cargo

How the shipper delivers the goods affects the handling and transportation process. Here are the most common cargo types:

• Dry Freight. General items that don't need temperature control, like textiles or electronics.
  
  
• Refrigerated Freight. Perishable or temperature-sensitive products, such as food or pharmaceuticals.
  
  
• Hazardous Materials. These are items like chemicals or flammable goods that should meet strict safety regulations.
  
  
• Bulk Freight. These are unpackaged raw materials such as coal, grains, or minerals shipped in large quantities.
  
  
• Project Cargo/Oversized Freight. Large, heavy, or irregularly shaped items, such as construction machinery or turbines.

Service Speed

Note that not every shipment is urgent. Many freight services offer various speed options to match business needs.

• Express Shipping. It is perfect for time-sensitive shipments that need fast delivery.
  
  
• Standard Shipping. A balanced option that offers reasonable delivery times at moderate costs.
  
  
• Economy Shipping. The most budget-friendly choice for non-urgent deliveries with flexible arrival dates.

Factors Affecting Freight Shipping Rates

Before booking anything, it's important to understand what drives shipping costs. Each rate depends on several factors that influence how carriers price their services. Here are some reasons to consider:

• Distance and Location. General rule: the farther your goods travel, the higher the charges. Deliveries to remote areas or across borders can add fuel, surcharges, tolls or customs fees.
  
  
• Timing/Time of Year. The rates may fluctuate throughout the year. Peak seasons often mean higher prices due to increased demand and limited carrier space. So, avoid those last-minute shipments.
  
  
• Mode of Freight Transport. Air freight typically costs more than road or ocean shipping. Speed, security, and fuel costs contribute to these price gaps. Choosing the most appropriate mode helps balance delivery time with your budget.
  
  
• Weight and Size. Commonly, larger or heavier shipments cost more. Carriers often charge by whichever is higher. It can be the actual weight or the dimensional weight (the space your cargo occupies).
  
  
• Density/Slowability. Freight that's easy to stack and takes up less space costs less to ship than bulky, irregularly shaped items.

What Does Freight On Board Mean

The term Freight on Board (FOB) determines when ownership and responsibility for goods shift from the seller to the buyer. Under FOB terms, the buyer assumes risk and costs once the shipping company loads the goods onto the transport vessel. It helps clarify who handles expenses like shipping, insurance, and customs once the goods leave the seller's control.

For example:

A Mexican buyer orders furniture from a manufacturer in Canada under FOB Toronto terms. Once the Canadian manufacturer loads the product onto the ship at the Canadian port, ownership and responsibility shift to the Mexican buyer.

If something happens to the goods during transit, the buyer (not the seller) must file an insurance claim. They will also cover any related costs. However, if the damage occurred before the Canadian seller loaded onto the ship, the seller will still be responsible.

How Much Does Freight Cost Typically

As mentioned, the costs vary depending on various factors. Here's a general overview:

• Road Freight (Domestic): 2.00 CAD - 4.00 CAD per mile
• Air Freight: 5.50 CAD - 11.00 CAD per kilogram/pound
• Ocean Freight: 1,350 CAD - 6,700 CAD per container, depending on the route and season

Disclaimer: These are just estimates. Always request quotes from multiple carriers or freight brokers to compare options and secure the most competitive pricing for your business needs.

H2: How to Ship Freight

If you're new to freight forwarding or shipping, the process may seem intimidating. But it's straightforward with the proper preparation. Here are some of the basic steps you can follow:

1. Measure and weigh your shipment accurately to avoid billing surprises.
   
   
2. Package and palletize goods securely for safe transport.
   
   
3. Choose a carrier or freight service that suits your delivery time and budget.
   
   
4. Prepare all documents, including a Bill of Lading (BOL) and customs paperwork (if applicable).
   
   
5. Schedule pickup and track your shipment until delivery.

Benefits of Freight Shipping to Businesses

Freight shipping offers more than just transportation. Here are some of the benefits you can enjoy when using it:

• Economical. Shipping in bulk reduces per-unit transportation costs, making freight a cost-effective solution for large-scale deliveries.
  
  
• Range and Quantity of Items. Businesses can move everything from raw materials to finished products in one shipment, saving time and coordination effort.
  
  
• Eco-Friendly. Consolidating shipments means fewer trips and lower emissions, helping companies reduce their carbon footprint.
  
  
• Variety of Options. From express air freight to economical sea transport, there's a solution for every timeline and budget.
  
  
• Consistency. Freight carriers follow structured routes and tracking systems, ensuring reliable and predictable delivery times.

Final Thoughts

Freight shipping is crucial in business logistics. It offers flexibility, cost-efficiency, and scalability for companies that handle large or international shipments. Answering and understanding "What is freight?" helps you plan smarter, reduce costs, and avoid delays.

Ready to Go Beyond Freight? Ship Smarter with Stallion

Are you ready to expand beyond freight? Ship efficiently and confidently with Stallion's trusted 3PL solutions. We designed each service with Canadian eCommerce businesses in mind.

Stallion can provide the tools and support you need to simplify every step of your shipping process. As a reliable 3PL partner, we can offer:

• Competitive rates
• Real-time tracking
• Customs clearance support
• Warehousing
• Fast delivery options across Canada, the US, and international markets

Our goal is to help businesses like yours save time, reduce costs, and ensure every shipment arrives safely and on schedule.

From parcel to freight, Stallion makes cross-border shipping simple, affordable, and stress-free.

Jose Sagun

Jose is Stallion's Senior Business Analyst. He helps improve the company’s shipping processes, works closely with delivery partners, and looks at shipping data to find the best prices for our customers. Outside of work, Jose has a passion for running, regularly completing 5k and 10k runs, with the goal of running a full marathon in the near future.