Essential Terminology for the Auto Transport Industry

What is Freight?

Freight pertains to commodities or merchandise delivered from one place to another using transportation equipment like trucks, trains, ships, or aircraft. It ranges from the various pieces that make up an article or from the items that constitute raw material for production to the finished articles or end products for consumption. Introducing efficient means of handling freight is critical for today's economies.

Types of Freight

Among the most critical factors are the load characteristics that define the choice of means of transportation and modes of operation. Key types of freight include:

• General Cargo: This category comprises many non-sensitive products: packaged items and merchandise, small home items, and machinery.
• Bulk Cargo: This refers to items not pre-packed and transported in large volumes, such as maize, iron ore, and beverages.
• Oversized Cargo: Whenever the items involved in transportation are beyond the average standard size, they will need special handling and modes of transportation. Some products requiring complex large-diameter bearings include construction equipment, windmill parts, and extensive industry equipment.
• Hazardous Materials: Goods classified as dangerous, such as chemicals, explosives, and flammable items, should generally adhere to some set regulations and precautions for transportation.

Freight Transportation Methods

The type of transport used depends on the type of freight, the distance, the desired delivery time, and the cost. Common methods include:

• Truckload (FTL) Shipping: This entails numerous quantities of a particular shipper's products carried in exclusive trucks.
• Less-than-truckload (LTL) Shipping: A method of accumulating small amounts received from different shippers in one truck to make it cheaper.
• Intermodal Transportation: Incorporates using more than one carrier to move goods from one location to another using trucks, rail, and ships.
• Air Freight: The agreed type of transport is for perishable commodities or goods needed in a hurry.
• Ocean Freight: Mainly in the cross-continental business of transporting vast quantities of products for considerable distances.

However, the role of freight transportation cannot be overemphasized in any context and thus deserves earlier mention.

The Importance of Freight Transportation

Freight transportation is an integral component of the supply chain and global economy because it moves goods from one location to another. They help acquire input, sell outputs, and fulfill customers' requirements in a business organization. Freight business drives the economy, employment opportunities, and commerce globally.

Globalization and the development of e-commerce will continue to push an increase in the need for freight transport services – IT innovations such as logistics software and TMS are becoming established as critical tools in improving the industry's performance.

Do you want to focus on a particular facet of freight transportation, such as the difficulty encountered in industry or the influence of technology?