subject: The Basics Of The Local Freight Industry [print this page] Wether you are asmall business or a major corporation, when you need to have cargo shipped it is imperative to understand a little about the basics of the freight industry. Understanding the terms that are used and the way things work will help you locate the kind of help you really need. For instance, you may need to go with a different shipper if you are interested in local shipping as opposed to international shipping. By understanding what a shipper and a carrier are, you will be better equipped to find the right company to handle your cargo.
Who is the Shipper?
If you have cargo that you need to have transported from one location to another, you are the shipper. Many shippers will hire freight companies to handle the details of getting the cargo from point "A" to point "B." Sometimes a shipper will prefer to find his own carrier rather than going through a freight company. Some companies use direct carriers for certain types of shipping and use a freight company to handle the logistics of other shipments.
A shipper's goal is often to find a carrier that can safely transport the cargo in a timely fashion for a reasonable price. Of course, different carriers will charge different prices, and it can take some research to find the lowest prices. However, it is important that you don't let price alone rule your decision, as you want to go with a company that has a reputation for getting cargo to its destination safely and on time.
Who is the Carrier?
The carrier is often a trucking company that transports cargo from one place to another. However, a carrier could also be a company that uses trains, airplanes, and even ships to transport the cargo. The Department of Transportation or the Federal Motor Carrier Safety Administration oversee the entire industry in order to ensure sufficient security.
Carriers set their own prices for transporting cargo, and there are a number of variables that must be taken into consideration when setting prices. For instance, the type of cargo may make a difference, as well as the size of the cargo and the distance that must be traversed to arrive at the destination. Generally, if you can avoid expedited shipping by planning ahead, you can save money. Particularly when your cargo is less than a full truckload, the carrier may charge extra for immediate delivery.
