Executive summary
If you’re unaccustomed to freight shipping, there are some key essentials to know to help you choose the right carrier and service level for your shipment.
Make sure your carrier can cater to any specific needs you may have, including special transportation requirements, tracking abilities, or specific clearance expertise.
Prices for freight shipping can vary. Efficient packing, offpeak shipping, economy services and utilising lastminute rates are all ways to help control costs.
It’s essential you prepare your package for shipping properly. Include the correct documentation, make sure it’s labelled properly, and ensure your goods have enough protection.
Large orders, bulky items, shipments to fulfilment centres, imports from suppliers – there are many reasons why even small companies could need to ship freight.
But if you’re unfamiliar with doing so, it can be hard to know where to start. Here are six questions you need to ask.
1
How do I get started shipping freight?
One of the first things to do is to consider how you want to arrange for your product to be shipped. There are two main choices:
- Freight forwarder: A middleman that engages different carriers to get your shipment from A to B. Forwarders can be more flexible as they work with a variety of vendors, but because everything is outsourced there can be less visibility and control over the shipment.
- Freight integrator: These own and operate their own fleets and handle the whole process themselves. This can mean more reliable transit times and often a lower cost, with potentially greater visibility and control.
When researching freight shipping, you’re likely to come across both. Think about your shipping priorities and preferred mode of transport to help make the right choice for your business.
2
How do I choose a carrier?
There are some major considerations when choosing a carrier. And, of course, costs, flexibility and availability may all play a part to a certain degree. But it’s also important to think about whether the carrier has strong operations in the regions you want to ship to, and whether it can handle the needs of your business as it continues to develop.
You should also ensure it can cater to the individual needs of your shipment. For instance, do you want to ship dangerous goods? Or products that require refrigeration? Or are your shipments an irregular size or heavier weight, and therefore need special transport and loading assistance? Will your shipments require specific customs expertise?
Assess your needs in advance when considering which carrier to choose. It’s important that whoever it is has the experience and ability – and the network – to ship the kind of product you need to move.
"Assess your needs in advance when considering which carrier to choose."
3
How can I keep my costs down?
The first step in keeping costs as low as possible is to understand how freight rates are calculated, and any factors that may affect pricing.
The total amount will be based on the weight and size of the package, including its dimensional weight (DIM). This is the weight of the package in relation to the space it takes up. The destination the shipment is travelling to will also be a factor.
But there are ways in which to reduce costs. For instance, prices are likely to be higher at peak times and other periods of high demand. These can be mitigated in a few ways. One is by planning shipments around particularly busy times, while another is to enter into a contract with a carrier that fixes the price per kilogram for a set period. This can be useful if you are planning to ship regularly.
Other ways to reduce costs include making sure pallets are packed as efficiently as possible, and ensuring any unnecessary weight is eliminated. You can also choose premium or economy services, depending on how urgent your shipping needs are.
And don’t forget last-minute prices. If you can be flexible, and if there’s available capacity, you can benefit from big reductions on standard rates by booking this kind of shipment.
4
How do I prepare a freight shipment?
This is one of the most crucial steps in the process. Follow these steps to help ensure the overall success of the shipment:
- Use the right amount of packaging and protection. Get the balance right between securing your goods and not adding unnecessary weight.
- Use pallets whenever possible. This makes your shipment easier and more efficient to move and reduces the likelihood of any damage occurring.
- Get the documentation right. Your freight shipment will need to be accompanied by certain specific documentation. This includes a commercial invoice with accurate goods descriptions and HS codes, and an air waybill (or bill of lading for ocean freight). You should also check if your shipment requires any additional licences or permits for the destination you are shipping to (your carrier may be able to support you in preparing key documentation).
- Clearly label your package. This is an essential part of the process if you want your goods to arrive promptly and safely. Labels should be affixed to the outside of the packaging, clearly showing addresses for both the shipper and the receiver. You should also ensure you label the package with any other relevant instructions or information, for example if the shipment contains dangerous goods, is fragile or if it needs to be kept upright.
5
How can I keep track of my shipment?
Many businesses want to keep a close eye on their shipments but, depending on the provider or how your goods are being transported, that’s not always easy. Some carriers will offer more visibility than others, including 24-hour tracking updates. If that’s important to you, make sure you choose a carrier that can fulfil your needs.
6
What does the terminology mean?
If you’re new to freight shipping, you’re likely to come across a range of terminology you may not fully understand. We’ve covered some already and it shouldn’t take you long to learn the rest – here are a few to get you started:
- Full Truckload (FTL): This is when your shipment accounts for all the space in a trailer.
- Less Than Truckload (LTL): This refers to smaller packages that take up part of the available transportation space and will be carried with shipments from other businesses.
- Partial Truckload (PTL): This sits between FTL and LTL. Goods will still be shipped with those from other companies, but they travel on a direct route with fewer stops. There will also be a minimum size requirement to qualify for PTL.
- Intermodal: Transporting the shipment using more than one mode of transportation.
- Expedited: Refers to shipments that are transported in a time-sensitive manner.
- Spot price: This is a one-off price for a freight shipment, based on a current market rate and subject to supply and demand variances. Also known as last-minute rates.
- Beneficial Cargo Owner (BCO): This is the owner of a shipment, and not a third party involved in its movement. In other words, the importer of record that takes ownership of the cargo at its destination.
- Bill of Lading (BOL): This is a document issued by a carrier to a shipper, stating the type and quantity of the goods being carried and their destination. It also acts as a receipt when the goods are delivered.
- Airport-to-airport: This refers to a carrier service that ships the goods from the origin airport to the destination airport. Other services available (depending on carrier) include door-to-airport, airport-to-door, and door-to-door services.
- Dimensional weight (DIM): This refers to the density of the package – its weight in relation to the space it occupies.
- Incoterms: This stands for International Commercial Terms, which are 11 rules that determine the responsibilities of sellers and buyers in international transactions, such as who pays any applicable duties and taxes.
For more information on how FedEx can support your business – including access to our quote platform to request a last-minute rate – see our freight shipping services.
Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example (but not limited to) a licensed attorney, law firm, accountant, or financial adviser.
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