In this article, you will be able to gain a better understanding of the different types of ground freight services, freight charges, the factors to keep in mind when choosing a freight mode as well as the top trucking issues in the industry at the moment.
What Are the Different Types of Ground Freight Services?
There are various types of ground freight services and onboard trucking technologies that you need to be aware of. To avoid unnecessary trucking issues and challenges, you need to carefully consider a number of factors. The type of service you choose will depend on the items you need, your budget, and how safe your goods need to be transported. Here is a brief overview of the different types of ground freight services:
Less Than Truckload
Less Than Truckload (LTL) is the most common type of freight shipment. It refers to freight that is shipped to and from a pickup location and the client’s destination. It is a time-efficient and cost-efficient way to transport goods because the shipment is shared with a number of clients.
With a partial truckload, fewer loads are moved at a time and the dedicated trucks are booked by volume. This type of freight can also accommodate more types of commodities than LTL, such as hazardous material or goods that need to be refrigerated.
Truckload (TL) is a faster form of transport than LTL, but it is also more expensive than LTL. If a company needs a full, dedicated truck, then a truckload would be recommended. This service is generally used for goods that need to be packed on flatbeds or goods that have specific requirements such as climate control.
Air Ride Truckload (Full or Partial)
An air ride truckload is used for shipments that can easily be damaged. It is more expensive than truckloads, but it guarantees a softer ride than standard trucks.
Blanket Wrap or Van Move
Blanket wrapping or van moves is generally used for shipping items that can’t be crated or boxed, such as furniture pieces. The move takes longer but ensures that a client’s items will arrive at its destination safely.
Expedited Freight Services
This refers to freight that is moved at a high speed (generally between 1 and 5 days).
Guaranteed Delivery Freight Services
With guaranteed delivery freight services, a predetermined date and time are arranged for delivery.
Getting A Better Understanding of The Different Types of Freight Charges
There are many terms used in the freight industry. Here is a brief explanation of the different types of freight charges that can be useful for anyone dealing with trucking issues and logistics:
Bills of Lading and Freight Bill
A bill of lading is a document that lists the number of items being transported as well as the types of items. Other information, such as the weight and value of each item, is listed in this document. A freight bill is an invoice that is used for record keeping.
The person receiving the freight, which is generally the buyer of the products, is accountable for charges when they receive the shipment. This also refers to the fact that the receiver of the goods is responsible for filing any legal documents and taxes related to the goods.
Prepay and Add
A shipper pays for the movement of the goods and charges the customer. If the shipper and the freight company have a good working relationship, then they can often negotiate better freight shipment rates than a customer.
A third party, such as a logistics company, is used when the buyer isn’t familiar with the freight industry. The logistics company would then pay the freight and charge the customer or consignee.
Cash on Delivery (COD)
When the goods are delivered, payment is collected by the carrier before reimbursing the shipper.
Free on Board (FOB) Origin
When the buyer accepts ownership of the goods upon delivery, then the seller forfeits his or her rights to the products.
FOB Origin – Freight prepaid
The goods are the responsibility of the consignee when the products are docked at the shipper’s location. The consignee pays for the freight charges.
FOB Origin – Freight Prepaid and Charged Back
The shipper pays for the freight charges and then invoices the consignee.
The freight charges have already been paid for by the shipper.
FOB destination, Freight Collect
The freight charges are paid for by the consignee.
FOB Destination, Freight Collect and Allowed
The freight charges are paid for by the consignee and these charges are then added to the bill that the seller of the goods will pay.
When Choosing a Freight Mode, Keep These Five Factors in Mind
1) Potential for Damage to The Goods
The fragility of the goods you need to transport will influence the type of carrier and mode of transportation that you choose. Movement and acceleration forces can impact freight containers during handling at rail yards and at various times whether sea, rail or road transport is used.
2) Transit Time
Different countries and cities will have different transport times depending on whether you are transporting goods by road, rail or maritime.
3) Cost of Transport
Factors that will add to the cost of your transport include regulatory compliance, manpower, maintenance of the vehicles and equipment, and fuel.
4) Fuel Efficiency
Road transport is less efficient than maritime and rail transport, but this efficiency is only achieved if a certain level of containers is transported at a time.
5) Levels of Safety
Trucks contribute to many accidents and fatalities on the road. Road transport is the biggest contributor related to transport accidents.
The Challenges Related to Road Freight in The USA
There has been an unprecedented rise in the cost of fuel, which many motor carriers struggle to recoup.
The economic downfall has led to increased inflation rates and a credit crisis in America.
Driver Shortage and Retention
Many carriers are concerned about the shortage of truck drivers and their ability to retain trained truck drivers.
Motor carriers in America are subject to a number of regulations by the Federal Motor Carrier Safety Administration as well as legislation by federal, state, and local authorities.
Hours-of-Service regulations have a large impact on the profitability of motor carriers as well as their day-to-day operations.
While congestion is a large concern for motor carriers, the issue has become less problematic due to a decline in cars and trucks on the road (which is caused by fuel price hikes).
The Highway Trust Fund is running out of money, which is an issue that has gained prominence in the country.
Compliance costs related to CO2 emission reduction initiatives are putting motor carriers under pressure to run more efficiently.
The goal of tort reform is to minimize motor industry harm from excessive civil judgments against trucking firms.
Onboard Truck Technology
Many of the onboard truck technologies have been positively received by the trucking industry due to its ability to monitor HOS compliance. However, there are still logistical and trucking issues related to this technology that need to be ironed out.
At FreeFreightSearch.com, we post loads submitted by thousands of brokers and shippers. To see the most loads leaving your location, simply click on “Search for Loads” and list your origin city with your acceptable distance radius (within 25 miles, for instance). We help you by listing the loads going in all directions. Sign up for our free load board today.