What Is Freight Shipping? Definition, Benefits, Factors, and Future Trends

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What Is Freight Shipping? Definition, Benefits, Factors, and Future Trends

If you’ve ever received a large, heavy, or oddly shaped package at your doorstep, chances are it arrived through freight shipping. In fact, most of the goods you buy, whether online or in stores, spend at least part of their journey as freight. Freight shipping is the process businesses use to move bulk goods that are too heavy or oversized for standard parcel delivery. These shipments are typically packed on pallets or in large containers and transported by truck, train, ship, or air, depending on their destination and urgency.

In this guide, we’ll break down what freight shipping is, how it works, the main types of freight transport, and why it plays such an essential role in global trade and supply chains.

What Is Freight?

Freight refers to cargo or goods that need to be transported from one place to another but are too large or heavy for standard parcel shipping. Most online orders delivered to homes use parcel services, which handle small packages and boxes. The exact point where a package becomes “freight” varies by carrier, but generally, anything weighing over 150 pounds, measuring more than 108 inches in length, or exceeding 160 inches in length plus girth (two times width plus height) qualifies as freight. Items shipped on pallets or in crates are also categorized as freight.

Almost any type of product can be shipped as freight, including bulk quantities of smaller goods combined on a pallet. Common freight shipments include furniture, vehicles, construction materials, and outdoor equipment. However, some items like hazardous materials (e.g., aerosols, fireworks), high-value goods (e.g., jewelry), or perishable products (e.g., meats, frozen foods) require specialized freight carriers that are equipped to handle their specific transport needs.

What Is Freight Shipping?

Freight shipping is the process of transporting large or heavy goods that can’t be sent through regular parcel services. It’s a key part of global logistics networks, using a mix of transportation modes such as ships, airplanes, trains, and trucks to move products across regions and countries.

For example, consider a U.S. distributor importing goods from Asia. The products are first packed into shipping containers, then transported across the Pacific Ocean by cargo ship to a West Coast port. From there, trucks or trains carry the freight to its final destination, often taking weeks or even months from start to finish.

Unlike small parcel deliveries from UPS, FedEx, or Amazon, freight shipments are far larger and heavier. They travel on semi-trucks, cargo planes, freight trains, or container ships, which can handle the bulk and weight that standard delivery vehicles can’t.

Freight is generally measured by how much space it occupies in a truck or container. Depending on the size and weight of the shipment, it can move as a full truckload (FTL), less-than-truckload (LTL), or through other specialized options that we’ll explore later.

Key Takeaways

Freight shipping is one of the most essential and widely used methods for transporting large volumes of goods across the globe. There are multiple modes of freight transportation, including truck, sea, rail, and air, as well as various shipment options designed to accommodate different sizes, weights, and budgets. This shipping method remains popular because it is cost-effective, efficient, and highly versatile, capable of handling a broad range of products. Businesses can leverage modern logistics technology to compare freight options in real time and select the best choice based on cost, speed, and delivery requirements.

Freight Shipping Explained

While it’s uncommon for consumer deliveries to arrive via freight, it remains the primary transportation method through which businesses receive goods. For many companies, freight shipping also drives outbound logistics, whether sending products to distributors, retailers, or directly to customers. Organizations rely on bulk shipments to secure the large quantities of parts, raw materials, or finished goods needed for manufacturing or resale. Even service-based businesses depend on freight shipments for essential office supplies, equipment, and materials ordered in volume.

Freight shipping is typically more cost-effective and operationally efficient than dividing bulk orders into multiple parcel shipments. The scale, equipment, and handling processes required to move large, heavy loads differ significantly from those used for smaller packages that can be delivered by standard courier services. Although major parcel carriers like FedEx and UPS also offer freight services, their freight divisions operate as distinct business units with specialized infrastructure and pricing models.

To optimize logistics costs and delivery timelines, businesses should evaluate all freight options and carrier rules rather than defaulting to familiar providers. In some cases, it may be more efficient to split smaller freight shipments into multiple parcel deliveries, especially when weight thresholds, delivery speed, or destination access make that approach more practical.

Freight Shipping Modes

Freight shipping is an umbrella term that encompasses several distinct transportation methods, each designed to meet different business needs. The volume, weight, type, destination, and urgency of goods all play a role in determining which mode is most cost-effective and efficient. Whether a company is moving time-sensitive electronics, heavy industrial materials, or temperature-controlled food products, the right freight mode can significantly impact delivery timelines and overall logistics costs.

Shipping providers typically offer multiple freight options and rate quotes, allowing businesses to compare factors like transit time, capacity, handling requirements, and budget. Selecting the optimal mode or a combination of modes is key to balancing speed, cost, and reliability within the broader supply chain strategy.

Less Than Truckload (LTL)

For smaller freight shipments that don’t require an entire trailer, less than truckload (LTL) shipping is often the most economical choice. In this model, multiple companies share trailer space, allowing each to pay only for the portion of the truck their freight occupies. Because LTL shipments are consolidated with others, the cost per shipment is lower than booking a full truckload.

Full Truckload (FTL)

For larger, bulk shipments that require exclusive use of a trailer, full truckload (FTL) shipping is the preferred choice. Typically used for loads exceeding 15,000 pounds, FTL allows your goods to travel directly from the pickup location to the destination without intermediate stops or transfers. This results in faster transit times and a lower risk of damage since cargo remains sealed and untouched throughout the journey. FTL is often more cost-efficient per unit for high-volume shipments and is ideal for time-sensitive or delicate freight.

Partial Truckload (PTL)

Partial truckload (PTL) shipping bridges the gap between LTL and FTL. While it also involves sharing trailer space, the shipments are generally larger than standard LTL loads (typically 5,000 to 30,000 pounds) and involve fewer shippers. This reduces the number of stops, handling, and transfers offering faster transit and lower risk compared to LTL, but at a lower cost than booking a full truck. PTL is best suited for mid-sized shipments that don’t quite fill a trailer but are too large for traditional LTL.

Sea Freight

Transportation by sea remains the backbone of global trade, accounting for over 80% of international goods movement. It’s the most cost-effective mode for long-distance and large-scale shipments, making it essential for global supply chains. Goods are packed in standardized containers and moved via massive cargo ships, often connecting ports across continents. While slower than other methods, sea freight’s low cost per unit and capacity to carry enormous volumes make it indispensable for international commerce.

Air Freight

Air freight is the fastest and most reliable mode for long-distance shipments, often used for urgent deliveries or high-value, lightweight goods. It provides unmatched speed and global reach but comes at a premium price due to fuel and handling costs. Businesses typically reserve air freight for critical shipments like electronics, medical supplies, or perishable goods where delivery speed outweighs cost considerations.

Rail Freight

Rail shipping is an economical and sustainable option for moving large, heavy, or bulk goods across long distances. Trains offer excellent fuel efficiency and are frequently used in combination with other modes of transport to cargo to or from ports and distribution centers. While slower than trucks or planes, rail is a cost-effective and environmentally friendly choice for non-urgent shipments that need to cover vast regions.

Intermodal Freight

When freight moves using multiple modes of transportation, for example, combining truck, rail, and sea, it’s known as intermodal shipping. This approach leverages the strengths of each mode to reduce costs and optimize efficiency. Containers stay sealed between transfers, minimizing damage and manual handling. While it can extend transit time, intermodal shipping often delivers the best balance of cost and reach for complex supply chains.

Expedited Freight

As the name implies, expedited freight is used when time is critical. This service prioritizes speed and reliability, ensuring goods reach their destination as quickly as possible often via dedicated trucks or air freight. While it commands higher rates, expedited shipping is invaluable for emergency replenishments, rush orders, or production line materials where delays could be costly.

Common Freight Shipping Equipment

Freight shipping doesn’t just rely on different modes of transportation it also depends on the right equipment to secure, protect, and transport goods safely. The type of equipment used varies based on shipment size, weight, and handling requirements. Choosing the proper setup ensures that cargo remains stable throughout its journey, whether it travels by truck, train, ship, or plane.

Some of the most common types of freight shipping equipment include:

Shipping Containers

If you’ve ever seen a long freight train roll past or watched cargo being loaded at a port, you’ve likely spotted these massive metal boxes. Shipping containers are the backbone of global trade, designed to carry large volumes of goods securely across sea, rail, and land. They’re most commonly available in 20-foot and 40-foot sizes, though other specialized variations exist for oversized or temperature-sensitive cargo. Built from durable, rust-resistant steel, these containers are engineered to endure harsh weather conditions and years of heavy use, ensuring goods remain protected throughout long-distance transport.

Pallets

A pallet is a flat, portable platform used to stack, store, and transport goods efficiently. Acting as a stable base, it allows multiple items to be moved at once using a forklift or pallet jack, which speeds up loading and unloading. The standard pallet size in North America measures 48 inches by 40 inches and typically weighs between 30 and 40 pounds. While wood remains the most common material due to its strength and affordability, plastic, metal, and paper pallets are also used depending on the product type and shipping requirements.

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Flatbed Trailers

A flatbed trailer is an open-air trailer commonly used to transport oversized, bulky, or irregularly shaped items that can’t easily fit inside an enclosed trailer. With no walls or roof, flatbeds allow for easy loading and unloading from any side, making them ideal for cargo that requires cranes or forklifts. Typical loads include heavy machinery, construction materials, steel beams, lumber, and large agricultural equipment. Because the cargo is exposed, shipments often require tarps, straps, or chains to secure and protect them during transit. Flatbed trailers are essential in industries where flexibility and accessibility outweigh weather protection.

Reefer Trucks

A reefer truck, short for refrigerated truck, is a temperature-controlled trailer designed to transport perishable or temperature-sensitive goods that must stay cool during transit. These trucks are equipped with built-in refrigeration units that maintain specific temperature ranges to preserve product quality and safety. Common products shipped via reefer trucks include fresh produce, meat, seafood, frozen foods, dairy products, flowers, pharmaceuticals, chocolate, lubricants, and even sensitive electronic equipment like computer servers. Reefer transport ensures these items arrive in top condition, regardless of distance or weather conditions.

Benefits of Freight Shipping

There’s a reason why freight shipping remains one of the most widely used methods for transporting goods worldwide: it’s efficient, cost-effective, and highly adaptable. Whether you’re moving raw materials, finished goods, or oversized equipment, freight shipping offers several key advantages that make it the preferred choice for many businesses:

Economical

Freight shipping is one of the most cost-effective ways to move large quantities of goods, particularly when using ships or trains. The less-than-truckload (LTL) option further reduces transportation costs by allowing multiple businesses to share trailer space. This shared-cost model is especially valuable amid rising shipping expenses, helping companies maintain profitability without sacrificing reliability.

Range and Quantity of Items

Freight shipping can accommodate everything from a single oversized pallet to dozens of them in one load. Its flexibility makes it ideal for transporting heavy, bulky, or unusually shaped products that wouldn’t fit within parcel size limits. Few other shipping methods can match freight’s versatility in handling such a diverse range of goods.

Eco-Friendly

By consolidating shipments from multiple companies onto shared vessels, rail cars, or trucks, freight shipping optimizes every trip and reduces the number of vehicles on the road. This approach significantly lowers carbon emissions, aligning with growing sustainability goals and meeting consumer expectations for environmentally responsible operations.

Variety of Options

Freight shipping offers multiple modes including truck, rail, sea, air, and intermodal allowing businesses to tailor shipments based on cost, delivery speed, and cargo size. Whether a company needs express air freight or budget-friendly sea transport, there’s a solution for nearly every logistical requirement.

Consistency and Reliability

Despite occasional global supply chain disruptions, freight shipping remains one of the most dependable transportation methods. Many LTL carriers operate on consistent regional schedules, ensuring predictable pickup and delivery times. This reliability supports better planning, improves on-time delivery rates, and strengthens overall distribution performance.

Factors That Determine Freight Shipping Rates

If a company is unsure whether they should ship goods via freight or parcel, they can use online estimator tools from different carriers to get a sense of the cost. Generally speaking, the amount of total shipping capacity consumed by your shipment is a primary factor in overall price. Below are a number of the variables that will impact the price of shipments:

Distance

Perhaps the most straightforward factor, the total distance your shipment must travel directly impacts cost. A trans-Pacific voyage will naturally cost far more than a short train trip between nearby cities a few hundred miles apart.

Timing

Urgent or high-priority shipments come with premium pricing. The more flexible you can be with your delivery timeline, the more affordable your shipping costs will be. Slower-moving freight almost always saves money.

Mode of Transport

As covered earlier, freight can move by truck, rail, sea, or air and each mode comes with its own cost structure. Ocean freight is generally the most economical, followed by rail, then truck. Air freight, while fastest, is typically the most expensive option.

Weight

Heavier shipments require more fuel and reduce the available capacity for other freight, increasing costs. For example, a 200-pound package will be far cheaper to move than several pallets weighing 3,000 pounds.

Size (Volume)

The physical space your freight occupies also plays a key role in determining price. Larger or bulkier items that take up more space on a truck or container will cost more to ship. Carriers often calculate this using dimensional weight or volume-based pricing.

Location

Where your shipment is picked up and delivered can influence the rate. If your pickup or drop-off point is far from a carrier’s hub or is located in a remote area, you may pay additional fees. Shipments originating near major transportation routes or industrial centers typically cost less.

Time of Year

Seasonal demand and weather conditions can significantly impact shipping rates. For example, winter storms, port congestion, or holiday surges may limit capacity and drive up prices during certain times of the year.

Density and Stowability

Carriers also consider how efficiently your goods can be packed and stored. Freight that stacks neatly and makes optimal use of available space costs less to move than items with irregular shapes or packaging that waste space. Poorly stowable freight may require special handling, further increasing the rate.

When to Consider Multi-Weight Instead of Freight

Multi-weight shipping compares the cost of breaking a shipment into multiple parcels versus consolidating it into a single freight shipment. It’s ideal when you have several boxes or pallets leaving from the same origin and heading to the same destination. Many shipping tools can automatically calculate both options and select the most cost-effective one. Using multi-weight can lower landed costs by helping you identify the best pricing structure without needing to manually compare rates. However, keep in mind that there are minimum and maximum weight and dimension limits per package and per total shipment, so not every order qualifies.

If freight and multi-weight yield similar costs, consider these factors:

Ease of handling: Multi-weight packages don’t require pallets or a designated loading area.
Weight savings: Pallets aren’t included in total shipment weight, which can slightly reduce costs.
Delivery flexibility: Smaller boxes are easier to deliver in urban areas where large trucks or loading docks may not be accessible.

How to Ship Freight

If freight shipping is the best option for your goods, proper preparation helps prevent damage. It ensures a smooth pickup and delivery process. Follow these key steps:

Prepare required documentation: Gather and complete all shipment paperwork your carrier will need before pickup.
Select appropriate packaging: Choose a pallet, crate, or box that’s the right size and free of structural damage.
Inspect items: Check for preexisting issues and document any minor damage before shipping to simplify claims if necessary.
Label clearly: Include destination address, contents, barcodes, and any special handling instructions on each shipment.
Secure the load: Use straps, bands, and shrink wrap to firmly secure items to the pallet or within the container.
Stage for pickup: Move the prepared freight to the carrier’s designated pickup area and double-check that all labels are accurate.
Document condition: Take photos of each pallet or box before pickup to verify condition and assist with potential claims.

Future Trends in Freight Shipping

Several factors, including technology advancements, sustainability pressures, and changing customer expectations, are driving shifts in the freight shipping industry. Some future trends to keep an eye out for include:

Increased digitalization and automation: Technology capabilities, including blockchain, Internet of Things, and freight management systems enabled by artificial intelligence (AI), have the potential to transform freight shipping. These technologies could unlock greater transparency, better security, real-time monitoring, route optimization, and more.
Vehicle advances: The rise of electric cars is already improving last-mile delivery and could hold some promise for other aspects of freight shipping in the future. One report(opens in a new tab) shows that 14% of fleets currently operate electric vehicles, and 87% expect to have them within five years. Autonomous cars will also have an impact, with testing being done on autonomous ships, for example.
More sustainable solutions: Alternative fuels, such as liquefied natural gas, hydrogen, and biofuels, to reduce greenhouse gas emissions; more energy-efficient vehicles and vessels; and carbon offset programs are all on the agenda for leading shipping providers.
New delivery options: Freight shipping has historically taken a one-size-fits-all approach to delivery timelines. In other words, it gets there when it gets there. But customers are demanding definitive and sometimes quicker delivery options and personalized services, putting pressure on shippers to offer more flexible delivery options.
Disruption mitigation and management: From port closures to blocked transitways to labor strikes, the freight shipping industry has seen more than its fair share of disruptions in recent years. Supply chain resilience will continue to be top of mind looking forward, with companies diversifying their partnerships and employing advanced analytics and AI to predict and handle possible disruptions.

Conclusion

Freight shipping is a vital part of global supply chains, enabling businesses to move large, heavy, or bulk goods efficiently and cost-effectively. By understanding the different shipping modes, equipment, and factors that affect costs, Dynamic Distributors can optimize logistics, reduce expenses, and ensure timely delivery. With technology and careful planning, freight shipping becomes a reliable solution for meeting diverse business needs.