Freight Functions and Roles
There are a number of different freight functions and roles in the freight industry. What is even more confusing is that a number of individuals and companies might provide more than one function, tending to blur the lines and leave customers confused. Key functions in the freight industry are as follows:
End Points:
Shipper
First of all is the shipper. The person or business that has the items that will be transported as freight.
Receiver
The person or business that items are being transported to as freight.
Intermediaries:
Freight Brokers
A freight broker connects shippers and carriers. Load.Monster as a freight broker utilizes its knowledge, technology, and human resources to ensure that shippers and carriers are matched correctly and that freight is delivered on time and on-budget.
Freight Forwarder
Freight forwarders take possession of items that are to be transported consolidating smaller shipments into one large shipment. They hold smaller shipments until they amass a larger shipment and move the items onto their various destinations. Also, freight forwarders typically have significant warehouse space used for consolidation.
Associations
Shipping associations are the “Sam’s Club” of the shipping industry. Associations are cooperative organizations that arrange shipping (much like a freight forwarder) for their members. Shipping associations are not open to the general public.
Import-Export Broker
Helping facilitate international shipping, the import-export broker will work with customs agencies. Also government agencies as well as international carriers.
Agricultural Truck Brokers
These smaller organizations concentrate on specific areas of the country and arrange the transport of agricultural products. Also, agricultural products are exempt from many shipping regulations.
Carriers
Motor Carriers
A company that provides truck transportation usually with a tractor-trailer combination. Furthermore, there are two types; private – generally a company providing its own cargo transportation and for hire -. Also, those who transport freight for others.
Intermodal
We do the intermodal transportation by truck, rail and ship without handling the freight other than at the point of origin and the destination. Typically we do this with containers that are transported by truck, rail and ship or barge. Intermodal transportation is typically for inter-continent freight.
Air Freight
Why choose air freight? Because it is one of the fastest growing carrier markets. Cargo or freight either go by dedicated cargo aircraft or on traditional airline flights. Also, air freight offers a much faster means of transporting freight over long distances and can be an effective means of transportation if the distance transported is greater than 800 miles.
Government / Oversight
There are several organizations that oversee and align various freight functions. Above all, most notable government organizations are:
US Customs Service overseeing the entry of foreign goods into the United States.
Department of Transportation responsible for distributing funds for highway transportation, setting motor carrier regulations and setting safety standards for freight movement.
Federal Maritime Commission regulating the overseas shipping industry.
Each states Public Utility Commission regulating permits to operate and intrastate freight rates.
Finally, each state’s Department of Motor Vehicles issuing licenses and tax payment compliance.
Industry Associations
TIA – Transportation Intermediaries Association. TIA which provides education, information, and connections for ethical transportation brokers.
NMFTA – National Motor Freight Traffic Association providing expertise in the classification of freight, packaging and transportation codes.
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Freight 101 – Your Freight Q&A