What Are The Best Options For Shipping Freight?
Your organization
simply wrapped up that costly bit of gear and you are currently
prepared to transport it to the client. It took you 10 weeks to
manufacture it so the exact opposite thing you need to do is manage
harmed or lost freight. Picking the correct transportation strategy
is basic on the off chance that you need to limit issues, while
keeping your expenses on spending plan. Investing a little energy
exploring and contrasting choices can spare you both time and
cerebral pains.
When looking for a
shipping solution you have the following options:
- Global Shipping Company
- Common Carrier
- Local Trucking Company
- Freight Broker
- Freight Forwarder
The above choices
each have advantages and disadvantages:
The global
shipping company has terminals nationwide and internationally. They
can ship by truck, boat, or plane. Their global network of resources
and computer tracking results in timely efficient deliveries
overseas. The other disadvantage of this type of service is that
loads are handled frequently as shipments are routed through a
network of terminals. The more frequently a load is transferred, the
higher the risk of getting damaged or lost.
Common Carriers
have a network of terminals either nationally or in a region. They
are strictly trucking companies. Large fortune 500 companies get
volume discount pricing, but the small business and entrepreneurs
will pay a higher rate. Once your shipment is over 1000 lbs, cost can
be prohibitive. The common carrier will use a local driver pick up
your cargo and bring it to the nearest terminal where it will be
unloaded from one truck and reloaded to another to go to the closest
major city to the final destination. This process is called cross
docking. Cross docking can be done several times before the cargo
reaches its final destination. This additional handling increases the
chances of cargo damage or goods being lost or delayed. The more
times a load is handled, the more chances of an unfortunate
occurrence.
Freight brokers
don't own trucks; they arrange shipments with a variety of other
trucking firms. They handle a large number of shipments so they can
use this leverage to negotiate lower pricing with the common
carriers. This results in lower rates to the client. While the
freight broker will negotiate and track shipments for you, they do
not take legal responsibility for the cargo: that falls back to the
carrier. This legal arrangement can sometimes put the customer at
double jeopardy for shipping costs, as they pay the freight broker,
but if for some reason, there is a problem between the broker and
carrier, the carrier can go back and collect payment directly from
the customer.
A freight
forwarder is very similar to the freight broker, they negotiate with
a variety of carriers to get good rates and handle the logistics and
tracking. The major difference is that the freight forwarder takes
legal responsibility for the shipment and offers consolidation of
shipments. That means that damage or other liability falls on the
shoulders of the freight forwarder which handles the claim on behalf
of the shipper. Both the freight broker and the freight forwarder
have relationships that will get better shipping rates over what the
small business could get from a common carrier.
Local trucking
company covers a city or slightly larger area. For shipping heavy
loads across town, the local trucking company may be your best bet as
you can often get competitive rates, on the other hand some of these
companies are very small and you may have to wait longer before your
cargo is picked up.
Some considerations
when choosing a carrier:
Insurance: Many
carriers have a standard insurance claim rate that only allows you to
recover $.10 to $.50 per pound. If this is not acceptable, then use a
freight forwarder as they insure the loads themselves and are able to
cover the total cost of the freight.
Expedited
Shipments: If a shipment has to get there quickly, don't
automatically assume that you have to use air freight. Some trucking
companies will use driver teams so the truck is on the road around
the clock. The extra driver does cost more but it would still be a
substantial savings over air freight. Expedited truck shipping
usually takes only day longer than air shipment, also air freight
involves more handling which means your cargo has a greater chance of
loss or damage.
LTL: LTL stands
for less than load and it means just that, some freight companies
won't do LTL. This could delay your shipment as the carrier is trying
to consolidate enough pick ups to create a full load. Many times a
freight forwarder can do LTL with little cost or time penalty.
Back Hauling:
Often times a carrier will make a delivery to a destination, but not
have a load to take him back home. Back hauling is picking up cargo
for returning to the origination point. Many times trucking companies
will back haul at a very low cost, since the alternative is an empty
load. Some freight brokers and freight forwarders are very good at
finding these opportunities and can save you a lot of money. In
addition, most times, there is no cross docking with this method so
your chances of lost or damaged goods are greatly reduced. For the
expensive cargo or fragile loads, this method is the safest way to
ship.
In general, the
small company will get the best value by using a freight broker or
forwarder, but make sure you choose an experienced company. There are
many carriers out there that are not dependable and an inexperienced
broker may end up going with an "unreliable" carrier, which
could result in lost, delayed or damaged cargo.
TracknGo Logistics
is a privately owned company located in Blaine Minnesota. Fidelity
offers ltl shipping, flatbed shipping, and has the cheapest freight shipping service around.
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