The movement of goods forms the backbone of global commerce, yet the language used to describe this process often causes confusion. Terms like “shipping” and “freight” are frequently used interchangeably, obscuring their distinct meanings within the supply chain industry. Understanding the difference between these concepts is beneficial for businesses and consumers when managing transportation needs and costs. This article clarifies the specific roles of shipping and freight, along with related terminology.
Defining Shipping
Shipping describes the overarching process or act of transportation itself. This term most commonly refers to the movement of smaller, individual parcels or packages that can be easily handled and sorted. These items are typically managed by integrated carriers such as the United States Postal Service (USPS), FedEx, and UPS.
These carriers specialize in a hub-and-spoke model, relying on highly automated sorting facilities to process millions of lightweight packages daily. Shipping primarily serves business-to-consumer (B2C) transactions, where individual customers receive single orders. It also handles small-scale business-to-business (B2B) needs involving lightweight components or documents.
Defining Freight
Freight is the term that specifically identifies the commercial goods being transported. Freight refers to items that exceed the standard size and weight limits of parcel carriers, typically weighing more than 150 pounds or requiring placement on a pallet for movement. This category of goods is intended for commercial use or resale, distinguishing it from individual consumer shipments.
The movement of freight is generally associated with business-to-business (B2B) transactions, moving large volumes of raw materials, finished products, or machinery. Specialized transportation services are employed, including Less-Than-Truckload (LTL) services, which consolidate shipments from multiple customers, or Full Truckload (FTL), which dedicates an entire trailer to a single shipper’s goods.
Key Differences in Practice and Scale
The practical differences between shipping and freight are apparent when examining the scale of the operation and the physical goods involved. A primary distinction lies in volume and weight: shipping handles small, non-palletized packages, while freight deals with consolidated, palletized, or bulk commodities. Parcel shipments are generally limited to weights below the 150-pound threshold, which necessitates classification as freight if exceeded.
Handling procedures represent another variance. Shipping relies heavily on mechanized and automated conveyor systems for sorting parcels efficiently. Freight, conversely, requires specialized equipment like forklifts and pallet jacks for manual loading and unloading at docks, as the size and weight prevent automated processing. This difference in handling means that freight movements require more robust infrastructure and specialized personnel at terminals.
Documentation also diverges significantly. A standard parcel shipment utilizes a simple tracking number and a shipping label for monitoring its movement through the carrier network. Freight movements require a legally binding document known as a Bill of Lading (BOL). The BOL serves as a contract of carriage, a receipt for the goods, and a document of title, detailing the commodity, quantity, and destination.
Understanding Related Logistics Terminology
Cargo
The term cargo refers specifically to commercial goods transported by sea or by air. While all items classified as cargo are considered freight, ground transportation freight is not typically called cargo. This distinction highlights the specific mode of transport used for international commercial movements.
Carrier
A carrier is the company or entity that assumes responsibility for the physical transportation and movement of the goods. These entities provide the necessary assets, such as trucks, planes, or ships, to execute the delivery of both parcels and bulk commodities. Carriers can range from integrated global companies to specialized regional trucking firms.
Logistics
Logistics describes the detailed planning, management, and execution of the entire supply chain, encompassing activities beyond just transportation. It involves the coordination of warehousing, inventory management, packaging, security, and information flow from the point of origin to the point of consumption. Effective logistics aims to optimize efficiency and minimize the cost of getting the right product to the right location at the right time.
Choosing the Right Service
Determining whether a transportation need requires a shipping or a freight service depends on the physical characteristics of the goods. The most common deciding factor is the weight threshold, with the 150-pound limit serving as the conventional dividing line for most carriers. If the total weight exceeds this figure, it is almost always more cost-effective and necessary to use a freight service.
The dimensions of the packaged goods also play a role, particularly if the item is too large to fit within a carrier’s automated sorting machinery. Furthermore, if the goods require palletization—being secured onto a wooden base for movement by a forklift—they automatically fall under the classification of freight. Assessing these physical attributes provides guidance for selecting between a standard parcel service and specialized LTL or FTL options.
The fundamental takeaway is that shipping refers to the transportation process itself, while freight denotes the commercial, bulky goods being moved. Recognizing this distinction is highly beneficial for accurate cost estimation and effective supply chain planning. This clarity allows businesses to select the correct documentation and handling procedures.