What is a freight company?
Posted by Temando on Thursday, October 03, 2013
So what is a freight
company exactly? A freight company is a company that
specialises in one of the areas involved with the moving (or ‘forwarding’)
of freight, or cargo, from one place to another. These companies are
divided into several variant sections. There are international freight
forwarders who ship goods internationally from country to country and
domestic freight forwarders who ship goods within a single country.
There are a number of different methods of
shipping goods; either by air, road, sea, or rail. Obviously
there are different costs and factors involved with all of these means of
transportation and it is up to the freight company to inform the customer. Some
companies offer multi-modal solutions, which means that they offer
more than one service, in many cases air and sea and in other cases air, sea,
and road. The most common multi-modal way of shipping is referred to as
inter-modal meaning truck pickup to rail to truck delivery. The main reason for
multi-modal shipping is that generally that some forms of transport, namely
shipping, rail and air, are unable to do exact pickup and delivery while other
means of transport, such as road, is unable to cross the distances that
shipping, rail and air can. Multi-modality is a vital component of modern
freight. Another influence is cost, often it is cheaper to use multi-modal
means of transport. A third factor is the nature of the item being shipped. If
it is a time critical item then using a faster means of shipping, such as air,
over other slower but cheaper means, such as sea, are preferable.
In other words, the shipping method is by
evaluating three factors: time, cost, and product characteristics. While
shipping by sea could take longer than shipping by air, the latter is generally
more expensive. Shipping by rail could also be complemented by piggybacking the
freight onto a truck so it can be delivered to the receiver.
There are literally thousands of different freight
companies in business worldwide, many of which are members of certain organisations.
Such organisations include the IATA (International Air Transport Association),
TIA (Transportation Intermediaries Association) the BIFA (British International
Freight Association), or the FTA (Freight Transport Association) and various or
other regional organisations. It pays to choose a freight company that belongs
to one or all of these organisations as this is the best way of ensuring that they
will deliver a certain standard or service.
If you want to get the best results from your
freighting experience then you need to find a reputable company and you need to
consider the modality of your shipping. Obviously if your item needs to be
somewhere fast then you will need to consider air freight as it is the quickest
over long distances but if you are more concerned about cost then you are more
likely to choose a cheaper alternative such as sea freight.
Categories: Industry Posts