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Understanding Freight and Parcel Shipping

It does not really matter if you are just in search for a cost effective way of moving big products over long distances or shipping bundle of parcel packages in just a single shipment. What matters most is that, you have good understanding of the jargons that are used by various shipping professionals when you are negotiating contracts. While most of the shipping industry isn’t standardized, the terms shipping and freight are quite straightforward and also, consistent throughout the board. At its simplest form, shipping and freight are referring to the two parts of transportation of goods.

Freight or otherwise called as cargo is referring to big shipments of goods that are transported by air, land or water. There are a number of different classifications of freight shipments which include LTL or Less than Truckload and FTL or Full Truckload.

In general, shipping is in reference to transportation of goods by air, water or land. This could be for non-commercial or commercial shipments and may also include freight shipments as well as parcel shipments. In essence, this only refers to the procedure of moving products from A to B by using a shipping or transport company.

When you would like to have better understanding between the difference of shipping and freight, what you are really asking is whether you have to use parcel shipping or freight shipping for your products. Here are several benefits and at the same time, challenges that you may likely face for every method.

Freight Shipping

When you make use of this method, the shipper has got the option of bundling multiple shipments together for long haul and then, break down the shipment at their warehousing facility for several consignees. This is both environmentally and cost efficient shipping method. Freight is also priced and classified by a number of different factors which include the transportation method, route, size and weight.

Freight shipping oftentimes are offering big cost savings both to the consignee and the shipper. In the event that the shipper transports goods within local proximity of major metropolitan area, then a rail transport could be a more effective and also, affordable means of transportation. Now, if the shipper decided to store the product until the big sale, then a third-party logistics provider could provide assistance by finding the right freight shipping carrier and warehouse to make it happen.

Parcel Shipping

When making use of this method, oftentimes, the shipper is either a private citizen or a small retailer. Parcel shipping isn’t intended for long haul commercial shipping for the fact that it is both expensive and inefficient. Parcel shipping is normally priced and classified by various factors including the transport method, parcel value, weight, size and the guaranteed delivery date.

This shipping option is fairly convenient for the reason that you can directly send the product from any destination without it going to the warehouse. However, this level of convenience comes at a price and it is much expensive to make use of parcel shipping regardless if it’s a bulk amount compared to freight shipping for commercial applications.

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