Freight Shipping

For many businesses, freight shipping is a necessity. The U.S. Postal Service can handle small deliveries, but for larger packages, freight shipping is the only way to ensure your product reach its destination.

How Freight Shipping Works

Freight shipping is also called less than truckload (LTL) shipping. LTL carriers specialize in deliveries that are too large for mail or UPS shipping, but not large enough to need their own truck. These carriers frequently ship items weighing between 600 and 1,000 pounds, and can often ship up to 10,000 pounds. LTL carriers use a hub system, which allows packages to be shipped both quickly and efficiently. The company has a central hub or terminal to which all packages are delivered, before being divided among separate trucks, each of which has its own delivery route.

Hiring a Freight Shipping Company

First, decide if you want to use a national or regional carrier. Regional carriers only work within specific geographic locations, and if you want your package delivered outside that area, the carrier will have to transfer it to another carrier in the destination area. This practice, called interlining, can delay delivery time and increase shipping charges. Also, ask about the company's on-time delivery rate, or how often it meets its delivery schedule. A good rate is somewhere in the mid to high nineties. Finally, find out the company's claims to damage ratio, or the percentage of revenue that goes toward covering loss, damage, or theft—the industry average is around 1 percent.

Getting the Most for Your Money

As with any business expense, you want to get the best deal you can. To save money, try the following tips:

• Combine shipments with another company. If your company rarely uses freight shipping, try partnering with other companies, by joining a shopper's association or cooperative.


• Ask about discounts. Many freight shipping companies offer discounts, if you ask. Even on single shipments, you can save up to 15 percent; larger shipments may be discounted 30 percent to 60 percent.


• Establish an account. By creating an account and becoming a regular, repeat customer, you'll receive discounts other customers won't. You can also choose to be billed later rather than paying in advance, reducing your up-front costs.


• Use a freight broker. These companies compare costs among several freight shipping companies to help you find the lowest prices. They may also negotiate costs with companies.


• Ask about pickups from and deliveries to the terminal: Many freight shipping companies allow you to drop off your package rather than have it picked up, and many allow the recipient to pick up the item instead of having it delivered. This can greatly reduce your shipping charges.

By L.E. Terry