The logistics industry is quite diverse. A magnitude
of businesses and even individuals make use of this industry. As a
result, there are many services required to help this industry function
effectively. With so many things to control, it can sometimes be hard to
identify between the different types of service delivery in this
complex industry. Two services that are often confused are freight
services and small parcel shipping.
In this blog article, we are going to take a quick look at the difference between freight services and small parcel shipping. Both of these services are very high in demand yet are used by different types of companies.
Small parcel shipping is used by companies that are sending or receiving small packages.
These services are often repeatable and they are relatively easy to manage.
The packages that are shipped via small parcel shipping are usually small in dimension and they usually weigh less than 150lbs. Despite the fact that these parcels are small, they can be managed through large carrier companies such as FedEx, UPS, or the local Post office. Small parcel shipping is used by a huge variety of businesses as well as individual buyers who might purchase something from a small business or another individual.
A good example of small parcel shipping is online shopping. When you buy something online from a company, the company will put that individual item in a package and will then ship it to your destination via a small parcel carrier.
Another good example is when you buy a used item from another person in another town. You can then contact your small parcel carrier to collect the item from the seller and get it delivered to your home.
Freight is a term that indicates larger shipments. These shipments typically require a lot of management because the goods can sometimes be incredibly valuable and the handling and delivery of these goods are often complex.
The freight shipping industry usually has lots of terms and can include various services such as cargo management, parcel packaging, warehousing, and many others.
The main difference is that the size and quantity of these shipments are usually too large for small parcel shipping companies to handle.
In these types of shipments, large shipments often need to be divided into smaller quantities which are then shipped to different locations along the supply chain of a large company. The freight is often packaged on large pallets or containers where small parcel shipments can usually fit in a small box.
In freight, lots of complex terms such as FTL, LTL, LCL, and many others are usually used and all handles must understand these terms for the process to run smoothly.
Freight shipments can also leverage lots of different modes of transport to get goods delivered.
Air, railway and road transport are all sometimes used to get single customers goods delivered.
A good example of freight is when a wholesale company delivers lots of goods to various small businesses across the company. The wholesale company will send a large bulk shipment which is then broken down into smaller pieces so this bulk shipment can be delivered to various small businesses in the wholesale companies' supply chain.
Another good example is in agriculture where farmers need to send truckloads of produce to a single wholesale company. This wholesale company may then process the truckload of goods before shipping it across the company to small businesses.
Now that you understand the main difference between these two leading service providers in the logistics industry, you will know which service to contact when you are delivering large shipments down your supply chain or when you are ordering small amounts of goods from other companies.