Intimidated by Freight shipping? – Get over it!

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The thought of having wholesale or liquidation merchandise shipped by a freight company can evoke outright fear into many individuals. It is ok, take a deep breathe…we can get through this together.

Shipping pallets by a freight company is really similar to having merchandise delivered by UPS (United Parcel Service). Yes, the trucks are bigger and I know you are wondering if you will need a forklift or loading dock to receive pallets…

Most wholesale and liquidation companies are frequent freight shippers and receive discounts based upon the volume of shipping they do on a regular basis. In most circumstances when you purchase a large volume of merchandise from a wholesaler they will arrange all aspects of shipping to your door.

If you are faced with scheduling your own freight I am going to recommend that you use the services of a freight Broker for the first couple of shipments . A broker will quote and arrange shipping for you charging in most case a modest fee.

I speak from experience on this issue as my first freight shipment (3 pallets) was arranged through the services of FreightQuote.com. All I had to do was answer a few simple questions online to get a quote. Once I entered the details of my shipment I was given several choices of carriers and cost. The information needed for the quote was very straight forward and they do have a customer service phone number if you have further questions. After using this service a couple of times I felt confident enough to open my own freight account with a large national freight company.

Whether working with a freight Broker or direct with a trucking company you will need to provide some key information to get a freight quote including:

• What is the origin and destination zip codes?
• What is the weight of the shipment? This is a critical requirement as all freight companies will re-weigh your shipment to make sure you are being charged correctly.
• Number of pallets being shipped?
• What type of merchandise is being shipped? This will determine freight class (See terminology below)

Freight Terminology:

FOB – Acronym for Freight on Board. An FOB point describes where specific merchandise is departing from, or rather where merchandise being shipped should be picked up. When you are shopping for wholesale inventory an advertisement might read:

“Name brand electronics pallet $500, FOB Los Angeles, CA.”

You now know where this pallet will be shipping from

Bill of Lading – Also referred to as a BOL or B/L – This is a document which establishes the terms and conditions of a contract between a shipper and a transportation company. The BOL is provided by the freight company to the shipper and will include information such as, type of merchandise being shipped (class) and specific delivery instructions if necessary. If you are having merchandise shipped you will be required to sign the BOL once merchandise has been delivered as evidence of receipt.

Freight Class – Refers to the National Motor Freight Classification (NMFC) and it is the category of your freight as defined by the National Motor Freight Traffic Association (NMFTA). Your merchandise being shipped will be categorized under a specific Class which will determine the freight companies shipping charges. When a Class category is assigned it tells the freight company details about merchandise being shipped including, but not limited to, item weight, volume, value and how fragile items are. FYI – There are 18 freight classes ranging from class 50 (the least expensive) to class 500 (most expensive)

Residential Fee – If you are having your pallet delivered to a residence there is usually an additional fee to pay. This fee usually costs between $25 – $75 depending on the actual freight company. It is best to avoid this fee by having your pallet(s) delivered to a business address or the nearest freight terminal closest to your door.

Liftgate Fee - You will need to unload your pallets and without a forklift you will need a Lift gate trailer . Adding a Lift gate to your delivery will cost an additional $25-$75 extra

LTL – Acronym for Less Than Truckload, which means the shipment does not completely fill an entire truck. A trailer can hold up to 24 single-stacked pallets (See chart below). If your shipment is less then 24 pallets it will be considered an “LTL” shipment.