What is Freight?
Freight refers to the transportation of goods or cargo by land, sea, or air. It involves the movement of goods from one place to another using different modes of transport. In simple terms, freight is the process of shipping products from a supplier to a customer.
Types of Freight
- 1. Parcel Freight: Small packages or parcels sent through courier services.
- 2. LTL Freight (Less Than Truckload): Smaller shipments that do not require a full truckload.
- 3. FTL Freight (Full Truckload): Larger shipments that fill an entire truck.
- 4. Air Freight: Goods transported by air cargo carriers.
- 5. Ocean Freight: Goods shipped via sea freight containers.
Freight Costs
The cost of freight is determined by various factors such as the weight of the cargo, distance traveled, mode of transport, and any additional services required. Freight rates can vary depending on market conditions, fuel prices, and demand for shipping services.
Case Study: Walmart’s Efficient Freight Management
Walmart, the retail giant, is known for its efficient freight management practices. By utilizing a sophisticated supply chain network, Walmart is able to reduce transportation costs and optimize delivery routes. This allows Walmart to offer competitive prices to its customers while maintaining high service levels.
Freight Industry Statistics
- 1. The global freight industry is estimated to be worth over $14 trillion.
- 2. The top three countries with the highest freight volume are the United States, China, and Germany.
- 3. The maritime industry accounts for over 90% of global trade by volume.
