Freight shipping: what to know before you get started

Reliable logistics is key to business success. As global markets and geopolitical pressures tighten supply chains, finding smarter ways to move your goods can become your competitive advantage. Whether you’re managing large orders, bulky items, or shipments to fulfilment centres, there comes a point where standard parcel shipping may no longer meet your needs. Here’s what you need to know.

Freight isn’t just for heavy machinery or industrial containers; even bulk orders of smaller items like apparel qualify if the total weight exceeds 68kg.

Freight may be the right choice when:

• Your items are oversized: If goods are too heavy or large for standard sorting scanners, they require the specialised handling of a freight network.
• You’re consolidating orders: Combining multiple boxes onto a single pallet can lower the risk of incomplete delivery and reduce overall costs.
• You have bulk inventory: Shipping in volume via a freight network is often the most efficient way to replenish stock at international warehouses or fulfilment centres.

One of the first things to do is consider how you want to arrange for your product to be shipped. There are two primary types of partners you can work with:

• Freight integrators: These companies own and operate their own aircraft and vehicle fleets. Using an integrator often provides greater end-to-end visibility and more reliable transit times because the entire process is handled in-house.
• Freight forwarders: These act as intermediaries who coordinate with various carriers. While they offer flexibility for customised routes, you may have less direct control over the shipment once it’s in the hands of a third party.

Choosing a carrier is about more than just the lowest price – it’s about finding a partner that understands your specific market and product needs.

You’ll want to consider:

• Regional expertise: Ensure the carrier has a strong operational presence in the destination you’re shipping to.
• Specialised handling: If you ship dangerous goods, perishables requiring refrigeration, or fragile items, your partner must have the specialised equipment and customs expertise to handle these safely and compliantly.

Cost control comes from shipping smarter rather than just chasing low rates. Carriers calculate billing based on actual weight or dimensional weight (DIM) – its weight in relation to the space it occupies. Understand DIM and you stay in control of your costs.

To protect your margins, here are some things to consider:

• Optimise for density: Use right-sized packaging and stack pallets to the maximum safe height to eliminate “empty air” charges.
• Leverage co-loading models: If your timeline is flexible, use Less Than Truckload (LTL) to share trailer space and transportation costs with other businesses.
• Capitalise on market fluctuations: Reduce costs by scheduling shipments during off-peak windows or utilising last-minute rates when carriers have excess capacity.

Correct preparation is the best way to prevent damage and ensure smooth transit.

Pallets are the universal language of freight. They provide a stable base, protect against impact, and allow for efficient loading. You’ll also want to be sure you label clearly – ensuring shipper and receiver addresses are visible and standardised warning labels are used for fragile or dangerous goods.

Many businesses want to keep a close eye on their shipments but, depending on the provider or how your goods are being transported, that’s not always easy. Some carriers offer more visibility than others, including 24-hour tracking updates. If that’s a priority for you, make sure you choose a carrier that can fulfil these specific needs.

If you’re new to freight shipping, you’re likely to come across a range of new terminology. We’ve covered some already, but here’s a list to get you started:

• Full Truckload (FTL): Your shipment accounts for all the space in a trailer.
• Less Than Truckload (LTL): Smaller shipments that take up part of the available space and are carried with shipments from other businesses.
• Partial Truckload (PTL): Sits between FTL and LTL, where goods travel on a direct route with fewer stops. There will be a minimum size requirement to qualify for PTL.
• Intermodal: Transporting the shipment using more than one mode of transportation.
• Expedited: Refers to shipments that are transported in a time-sensitive manner.
• Spot price: This is a one-off price for a freight shipment, based on a current market rate and subject to supply and demand variances. Also known as last-minute rates.
• Beneficial Cargo Owner (BCO): This is the owner of a shipment, and not a third party involved in its movement. In other words, the importer of record that takes ownership of the cargo at its destination.
• Bill of Lading (BOL): This is a document issued by a carrier to a shipper, stating the type and quantity of the goods being carried and their destination. It also acts as a receipt when the goods are delivered.
• Dimensional weight (DIM): This refers to the density of the package – its weight in relation to the space it occupies.
• Incoterms: This stands for International Commercial Terms, which are 11 rules that determine the responsibilities of sellers and buyers in international transactions, such as who pays applicable duties and taxes.

Freight shipping offers an opportunity for SMBs to scale as trade becomes increasingly connected. While navigating logistics can be complex, strategic preparation gives you the upper hand.

Explore our freight shipping services and learn how we can help your business reach new levels of growth.

Disclaimer: The information provided on this page does not constitute legal, tax, finance, accounting, or trade advice, but is designed to provide general information relating to business and commerce. The FedEx Small Business Hub content, information, and services are not a substitute for obtaining the advice of a competent professional, for example (but not limited to) a licensed attorney, law firm, accountant, or financial adviser.