Supply chain fundamentals
What is Freight?
What is Freight?
Freight refers to goods, cargo, or commodities that are transported in bulk from one location to another, typically by commercial carriers using modes such as truck, rail, ocean, or air. Unlike small parcel shipments, freight usually involves larger quantities, heavier loads, or items that require specialized handling and coordination across the supply chain.
At its core, freight is the foundation of global trade. Nearly every product — from raw materials like steel and grain to finished goods like furniture or electronics — moves as freight at some point in its journey from origin to consumer.
How does freight work?
Freight moves through a structured system of transportation and logistics networks designed to balance cost, speed, and reliability. The process typically involves:
- Mode selection – Choosing between road, rail, ocean, or air depending on shipment size, distance, urgency, and cost.
- Carrier engagement – Contracting or booking with trucking companies, ocean liners, railroads, or airlines to move the cargo.
- Documentation and compliance – Managing bills of lading, customs paperwork, and regulatory requirements for domestic and international shipments.
- Handling and consolidation – Palletizing, crating, or containerizing goods for safe and efficient transport.
- Tracking and visibility – Using carrier systems, APIs, and visibility platforms to monitor shipments in transit.
In practice, freight might involve a container of electronics shipped by ocean from Asia, moved by rail across North America, and finally delivered by truck to a distribution center.
Why does freight matter?
Freight matters because it is the backbone of commerce and global supply chains. Without efficient freight movement, goods cannot reach markets, industries cannot operate, and customers cannot access the products they need. The cost and reliability of freight directly impact product pricing, delivery times, and business competitiveness. Delays, inefficiencies, or disruptions in freight networks can ripple across economies and industries.
Beyond its economic role, freight also shapes sustainability and resilience. Transportation choices influence emissions and environmental impact, while diverse freight strategies reduce reliance on any single mode or route. In a world of volatile demand, geopolitical shifts, and frequent disruptions, freight is more than the movement of goods — it is a strategic enabler of efficiency, resilience, and growth in the global economy.
Common questions about freight
How is freight different from parcels?
Parcels are smaller shipments, often under 150 pounds, typically handled by parcel carriers like UPS or FedEx. Freight generally refers to larger, heavier, or bulk shipments moved by truckload, less-than-truckload (LTL), rail, air cargo, or ocean containers.
What are the main types of freight?
Common categories include full truckload (FTL), less-than-truckload (LTL), intermodal (using multiple modes like rail + truck), bulk freight (raw materials like grain or coal), and containerized ocean or air freight.
Who pays for freight?
Responsibility for freight costs depends on the terms of sale (often defined by Incoterms). Either the shipper or the buyer may pay, depending on the contract.
What technologies support freight management?
Transportation Management Systems (TMS), freight procurement platforms, API integrations, and visibility solutions help companies plan, track, and optimize freight movements.
What’s the future of freight?
The future of freight lies in digitalization, sustainability, and automation. Technologies like AI-driven routing, electric or autonomous vehicles, and advanced visibility platforms will make freight movement faster, greener, and more reliable.
Putting it all together
Freight is the backbone of commerce, moving goods across regions and continents to connect supply with demand. It encompasses multiple modes, carriers, and processes that together enable global trade. While often taken for granted, freight decisions shape costs, customer service, sustainability, and resilience. For businesses, managing freight effectively is not just about transportation — it is about powering competitiveness and growth in an interconnected world.