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How to Ship via Freight (+ 5 Mistakes to Avoid)
by Rin Mosher on Sep. 10, 2024
Shipping via freight is often seen as a complex task for ecommerce businesses, especially when dealing with rapid growth. Whether you're moving pallets of products across the country for wholesale orders or arranging for international freight forwarding to expand into new markets, there are a lot of moving parts – literally. But it doesn't have to be as complicated as you might think. With the right strategies in place and a solid partner by your side, freight shipping can be a streamlined, cost-effective process that supports your growth rather than slowing it down.
In this guide, we’ll walk you through how to ship via freight, breaking down the essential steps and highlighting five common mistakes you’ll want to avoid. By preparing your business for freight, you’ll not only save time and money but also make your logistics more efficient.
Freight Shipping Explained
Freight shipping refers to the process of transporting large quantities of products or materials from one location to another via land, sea, or air. It is an essential element of logistics for businesses and industries that rely on the movement of goods to meet customer demands and maintain their supply chain. The term freight shipping may also encompass the services involved in the transportation process, such as packaging, loading and unloading of goods, customs clearance, and documentation.
When Freight Shipping Is Used
Freight shipping is mainly used for commercial or industrial purposes, such as transporting raw materials and finished products. It makes the most sense to use freight vehicles to cover the longest and loftiest legs of a journey because they're best equipped to handle large workloads. This almost always includes trips from the manufacturer to a warehouse or distribution center, and from there to retail locations.
For example, a company needing to transport 100 boxes of goods to home delivery addresses in the inner city would likely use a cargo van offered by UPS or FedEx. However, if that same company needed to transport 1,000 boxes of goods from its production factory to the fulfillment center, they would most likely turn to freight shipping services. It ultimately comes down to the route and load at hand.
Ecommerce sellers shipping products to B2B and wholesale clients regularly rely on freight to transport their customers’ large orders to retailer-owned distribution centers and stores. In fact, if you’re shipping a large number of products to a retail partner like Walmart, arranging freight delivery is usually a must outlined in your contract.
Small to medium-sized businesses that don't yet ship enough volume to warrant an entire vehicle can split the cost with other shippers in an arrangement known as LTL, or less-than-truckload shipping. The alternative, full truckload shipping (FTL), involves reserving an entire vehicle’s capacity for one shipment and is typically used when businesses need to move large quantities of goods at once, like in the previously discussed scenarios.
How to Ship Via Freight
The freight fulfillment and shipping process involves numerous steps, service providers, and responsibilities, outlined below.
Step 1: Determine Your Shipping Needs
As an experienced ecommerce business owner, you're likely familiar with the basics of shipping. However, as your business scales, your shipping needs will evolve. That’s why it’s important to begin by taking time to conduct a thorough inventory analysis of the types, sizes, and weights of goods you’re shipping via freight.
Special handling requirements may be necessary for fragile, perishable, or high-value items, while seasonal fluctuations in order volume will affect the amount of support you need throughout the year.
Step 2: Choose the Right Freight Forwarder
Freight is about a lot more than simply hauling heavy items or large orders from one point to another. There is a great deal of logistics involved in planning successful shipments. This is especially true at scale; businesses wanting to organize freight shipments in-house must hire dedicated logistics experts to oversee incoming and outgoing shipments on a day-to-day basis. In virtually all cases, it’s more sensible and cost-effective to enlist the help of a third-party freight forwarding company.
A freight forwarder acts as an intermediary between shippers and various transportation solutions, managing documentation, customs clearance, warehousing, and insurance. When you consolidate these responsibilities with logistics operations under a single partner, things are even more hands-off. The third-party company will oversee everything on your behalf and only reach out when necessary to keep you informed or request critical decisions.
It's simply a matter of finding the right provider – because no two options are made equal with respect to services offered, cost, or reliability. Don't sign a contract with the first freight forwarder or third-party logistics (3PL) company you come across. Instead, take the time to research and compare different providers, considering factors such as their industry experience, network of carriers, technology solutions, and customer service reputation. Look for a partner that aligns with your specific needs and can scale with your business as it grows.
References and case studies can provide insight into their ability to handle your unique shipping requirements. So do online reviews; the best 3PLs can back up their claims with positive feedback from satisfied clients. Don't hesitate to reach out directly to potential providers with specific questions about their services, pricing structures, and how they handle potential issues or delays. A reputable freight forwarder should be transparent and willing to provide detailed information about their processes and capabilities.
Step 3: Get a Freight Quote
This step is all about doing your research to identify every potential carrier option available to you. Just like with selecting a freight forwarder, don't settle for the first one you find. Cast a wide net and explore various carriers, both large and small.
Every carrier sets prices based on its own internal systems, which means that rates can vary significantly between carriers for the same shipment. Meanwhile, some carriers may have unique strengths or specialties that could benefit your specific shipping needs.
To get a freight quote from any carrier, you'll need to provide some key information. This includes:
- The origin and destination of your shipment
- The dimensions and weight of your cargo
- Any special handling requirements
- Your preferred shipping timeline
It's important to remember that with price variability comes potential tradeoffs. Some options may be more expensive because they offer faster delivery times, for instance. Goods requiring special handling or storage often come with premium pricing as well. On the flip side, some carriers might offer competitive rates for these specialized services.
The more up-to-date and precise a quote is, the better. Shipfusion prioritizes both with an advanced freight booking tool that automatically generates a list of custom quotes from various carriers in real-time. Easily compare expected routes, costs, and transit times in one place while benefiting from consistent and timely updates.
Step 4: Book Your Freight
Arranging the actual freight transportation is kind of like buying a plane ticket – you can do it yourself or work with a travel agent. If you're working with a freight forwarder, they'll act as your travel agent and handle all the details and paperwork on your behalf. If you're going it alone, you'll need to navigate the complexities of freight booking yourself.
Here's a breakdown of how the process works:
Confirming Shipment Details
Double-check all the information related to your shipment, including dimensions, weight, and any special requirements or handling instructions.
Scheduling Pickup and Delivery
Set specific pickup and delivery dates for the goods at the origin and destination. If you are working with a shipping company, coordinate these dates with them.
Preparing Documentation
Compile all necessary paperwork, which may include bills of lading, commercial invoices, packing lists, and customs forms. Ensure all documents are accurately completed and readily available.
Arranging Insurance
Consider insurance options to adequately protect your cargo during transit. Research different coverage types and select the one that best suits your needs and budget.
Tracking Your Shipment
Utilize available tracking methods to monitor your cargo's journey from start to finish. This might involve using online tracking systems, contacting shipping agents, or checking with port authorities.
Step 5: Packaging Goods for Freight Shipping
Last comes what is arguably the most daunting part of the freight shipping process: preparing your goods for transport. It’s different from DTC order packing in several ways. The first is scale – B2B and wholesale orders are large by nature, ranging between a couple hundred to thousands of units per shipment. Everything must be stacked on top of wooden pallets and wrapped in several layers of plastic film.
Then, labels with the sender's and recipient's addresses, special handling instructions, and any customs labels and documentation go on the sides of the cubed package. It seems simple enough, but as we’ll highlight in the next section, this is where ecommerce businesses handling freight on their own make the most mistakes.
5 Common Freight Shipping Mistakes to Avoid
Businesses that choose to handle freight themselves usually do so for the perceived benefits of on-the-ground involvement in and control over shipping operations. But both of those things and outside help from a freight forwarder aren't mutually exclusive. When using a 3PL that offers freight forwarding, like Shipfusion, you have complete transparency into the entire process – down to picking the freight carriers yourself.
Involving experts ensures you’re getting the best deals possible while minimizing the risk of making common mistakes like:
Mistake 1: Non-Compliance with Routing Guides
When arranging wholesale or B2B deliveries to a retail partner, the shipments must abide by the retailer’s routing guidelines – which often include very specific stipulations around freight shipping. Every major retailer, from Walmart to Target, has its own set of rules dictating how the cargo should be packed and delivered. These long and often complicated policies exist to make life easier for their receiving teams, who regularly handle large incoming shipments from a variety of sources.
Ironically, shippers tend to have the opposite experience with routing guidelines due to their incredibly specific standards on everything from pallet type to label placement. Compliance is especially complicated when preparing B2B and wholesale orders for multiple retailers. Mixing one customer’s preferences up for another means incurring chargebacks and potentially jeopardizing that business relationship altogether.
Packing products and coordinating timelines between B2B customers requires the full-time attention of an employee with experience in this specific type of freight transportation. At this point, it makes more sense financially and logistically to enlist the help of a third-party freight forwarding service.
Shipfusion’s decade-long experience with both B2B/wholesale fulfillment and freight shipping means we have both the expertise and the resources to ensure compliance with routing guidelines. Designed with every major retailer’s rules in mind, our internal order management system automatically guides packing processes based on the recipient at hand.
Mistake 2: Incorrect NMFC and Freight Classification Codes
Managed by the National Motor Freight Traffic Association (NMFTA) and Commodity Classification Standards Board (CCSB), the NMFC code system categorizes freight goods by factors like density, stowability, handling, and liability. Every commodity has its own specific code, which must be properly indicated on the Bill of Lading (BOL) before shipment.
Using the correct NMFC code is necessary to receive accurate pricing and prevent delays and disputes. But that doesn’t make it any easier for ecommerce businesses, whose logistics teams already have their hands full packing inventory to code with routing guidelines. Whether unintentional or intentional, misclassification comes with both short-term and long-term costs.
Experienced freight forwarders are up-to-date with the latest NMFC codes and regulations, ensuring your shipments are classified correctly from the start. This not only prevents costly errors but also streamlines the entire shipping process, saving you time and resources.
Mistake 3: Inadequate Tracking and Communication
Properly preparing orders for shipment is only half the battle. After goods leave the warehouse, they must undertake a long journey to get to the buyer’s delivery address. A lot can go wrong in transit, especially when cargo crosses borders or changes hands. As an ecommerce business owner, the most you can do is select seemingly-reliable options and hope for the best.
If something does go wrong, you may find yourself scrambling to locate your shipment and provide updates to anxious customers. By contrast, a professional freight forwarder’s advanced tracking systems and proactive communication will allow you to monitor your shipments in real-time, anticipate potential issues, and provide timely updates.
Mistake 4: Failing to Consider All Shipping Costs
Freight shipping costs encompass more than just a carrier’s fee for getting goods from Point A to Point B – and if you don’t know of them beforehand, those ‘hidden’ costs are often only discovered when it’s time to pay the bill.
Commonly overlooked expenses include inspection fees, documentation processing costs, bond costs, and storage or layover fees. If the shipment is crossing international borders, budgets must also factor in duties and tariffs.
A professional freight forwarder can provide a comprehensive breakdown of all potential costs associated with your shipment, helping you budget accurately and avoid unexpected expenses. They can also suggest cost-effective alternatives and negotiate better rates with carriers, potentially saving you money in the long run.
Mistake 5: Overlooking Insurance and Liability
Many businesses underestimate the importance of proper freight insurance, assuming their standard coverage is sufficient. However, standard policies often fall short when it comes to the unique risks associated with freight shipping. Without adequate protection, you could face significant financial losses if your goods are damaged, lost, or stolen during transit.
Freight forwarding experts can help you navigate the complex world of shipping insurance, ensuring you have the right coverage for your specific needs. They can also assist in managing claims efficiently should any issues arise, minimizing disruptions to your business operations.
Shipfusion's Freight Forwarding Solution
The freight shipment booking process is traditionally tedious, but executing it properly is key to ensuring products get where they need to go in a safe, timely, and cost-effective manner. With delivery efficiency on the line and the constant pressure of managing other business operations, ecommerce business owners can leverage Shipfusion Freight to simplify freight management, freeing up hours that would otherwise be spent coordinating shipments and tracking orders.
As an industry leader in third-party logistics, Shipfusion offers freight forwarding and B2B wholesale services. Shipfusion maintains a robust network of fulfillment centers, all of which operate in lock-step through proprietary warehouse management software.
Our team's expert understanding of logistics, combined with our established carrier relationships, positions us to optimize routes, negotiate competitive rates, and ensure timely deliveries at scale.
Unlock the Power of Portal
Technology is a key element of the Shipfusion experience. Shipfusion Freight allows clients to book, manage, and track freight shipments in a user-friendly platform. This integration eliminates the need for multiple platforms by sourcing relevant product information we already have as your 3PL.
Quote Comparison, Simplified: Shipfusion makes rate comparison easy with a dashboard displaying freight shipping quotes from over 30 major carriers in real-time. Shipfusion Freight makes choosing the most cost-effective and fast shipping option a breeze.
Real-Time Information: You can always count on the data you see in Shipfusion Freight to be accurate. Our freight tool updates quotes, delivery status, and tracking information in real-time, and you’ll get detailed tracking updates every 1-8 hours.
Timely Notifications: Automatic notifications mean staying in the loop at all times. Whether it’s a vendor chargeback or unforeseen shipment delay, our system makes it easy to address problems before they escalate.
Automated Data Entry: Gone are the days of entering shipment pickup and delivery addresses, SKUs, and pallet details line by line. Data from any linked projects you have in Portal can be seamlessly pre-populated in Shipfusion’s Freight tool.
Freight Classification Done for You: No need to become an NMFC code expert or risk the penalties of misclassification. We’ve equipped Freight with a back-end density calculator that classifies your freight and displays it on the Bill of Lading (BOL) automatically.
With Shipfusion, booking the freight transportation you need is as easy as a few clicks. You don’t have to navigate the complexity of freight shipping by yourself – contact one of our fulfillment experts today and discover just how easy things can be with the right help.
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