The logistics industry serves as the backbone of the global economy, enabling the movement of goods across the planet. And the beating heart of this industry is freight carriers, companies that transport cargo from point A to point B.
For businesses involved in shipping, manufacturing, and supply chain operations, understanding what freight carriers are and how they operate is essential.
Defining a Freight Carrier
So, what is a freight carrier exactly? A freight carrier is defined as an individual or company that specializes in transporting cargo, whether by land, sea, or air. Some freight carriers specialize in a single mode of transportation, while others offer multimodal services.
The Role of Freight Carriers in Logistics
We can only speculate about what our society would look like without logistics. How would the supply chain function without freight carriers? How would cargo move, and how would businesses operate? Getting goods from one place to another safely and efficiently is what makes the world run. Put simply, freight carriers are an indispensable piece of the broader supply chain puzzle.
Types of Freight Carriers
There are different types of carriers in the freight marketplace, and it's important that business owners understand the key differences between them.
- Parcel carriers – Parcel carriers deliver small and lightweight (up to 110 pounds) items directly to individuals or businesses. FedEx, UPS, and DHL can be considered parcel carriers.
- Full-truckload (FTL) carriers – Full-truckload, or FTL, carriers offer dedicated trucks. They are ideal for businesses shipping large quantities of goods that fill an entire truck.
- Less-than-truckload (LTL) carriers – Less-than-truckload, or LTL, carriers handle shipments that are larger than parcels but don't require an entire truck for transport. They are a good solution for businesses that don't ship enough goods to fill an entire truck and need flexible freight rates.
- Intermodal carriers – Intermodal carriers transport freight using multiple modes of transportation, so they are a great option for businesses with diverse shipping needs.
To sum up, understanding the distinctions between different types of freight carriers can help you choose the most cost-effective and efficient shipping solution for your business.
Specialized Freight Carriers: Catering to Unique Needs
Specialized freight carriers are in a category of their own. As you might imagine, they handle goods that require care beyond what other freight carriers can manage. They are meticulously categorized by freight class to ensure that they are handled with the care they require.
If you're a business owner, there might come a time when you need to ship an extremely large or heavy item. In that case, you would have to turn to a specialized freight carrier. Specialized freight carriers also transport refrigerated goods, hazardous materials, industrial equipment, delicate electronics, and such. Certain industries rely heavily on them.
Choosing the Right Freight Carrier for Your Business
To choose the right freight carrier for your business, you need to consider multiple factors. This includes:
- Price
- Reliability
- Speed
- Geographic coverage
- Specialization
- Insurance and liability coverage
- Reputation
Additionally, remember to take into account the type of carrier—LTL freight carriers make more sense for some businesses, while others may benefit more from working with FTL or specialized carriers.
The Impact of Technology on Freight Carriers
The technological advancements of the last few decades have had a profound impact on all industries, including logistics. Freight carriers use technology to streamline their operations, improve tracking and efficiency, and reduce their environmental impact.
Lojistic employs cutting-edge technology to help businesses streamline their supply chain management and optimize freight transportation.
Lojistic's shipping analytics tool, for example, is great for spotting cost-saving opportunities and boosting efficiency. The shipping reporting tool, meanwhile, provides valuable shipping data.
Strategic Partnerships with Freight Carriers
Building strategic partnerships with freight carriers is a good way for businesses to save costs and improve overall efficiency.
Building Effective Partnerships
It takes time and commitment to build successful and long-lasting partnerships with freight carriers, but it can definitely pay off.
Transparency and open communication can go a long way, but the best way to gain a carrier's trust is by following through on commitments—pay on time, resolve issues as quickly as possible when they arise, and treat your carriers as valued partners.
Leveraging Data for Smarter Decisions
If you're not leveraging data and technology, you're missing out on opportunities to grow your business. Lojistic's parcel shipping cost comparison tool, for example, compares your carriers against one another to help you determine which one best suits your business needs.
You can also use Lojistic for UPS & FedEx contract optimization, which will help you evaluate any rate increases and find space for improvements in your current contracts. In addition, you can utilize Lojistic’s discounted group parcel rates to save even more.
Streamlining Your Logistics with the Right Freight Carrier
The role of freight carriers in the economy cannot be overstated. They support businesses of all sizes and power our society. Precisely because freight carriers are critically important, choosing the right one for your business can make a world of difference.
Lojistic's parcel and freight auditing software solutions can help streamline your logistics and seamlessly reorganize your business, ultimately improving the bottom line.
Sources:
DHL. Freight Carrier. https://dhl-freight-connections.com/en/logistics-dictionary/freight-carrier/
Cargoson. Parcel, LTL, and FTL Shipping: What's the Difference?
https://www.cargoson.com/en/blog/parcel-ltl-and-ftl-shipping-whats-the-difference
FreightRun. WHAT IS SPECIALIZED FREIGHT SHIPPING.
https://www.freightrun.com/blog/post/specialized-freight-shipping-services
LJM Group. 3 Steps to Strengthen Your Carrier Relationships. https://myljm.com/3-steps-to-strengthen-your-carrier-relationships/ What is a Freight Carrier?
Author
Rich Harkey
Rich Harkey
Senior Strategy Manager
As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.
Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.