Shipping vs. Freight: What’s the Difference?

Confused about the difference between shipping and freight? You’re not alone. 

These two logistics terms are often used interchangeably, but understanding their distinctions can significantly impact your business operations. 

This guide cuts through the jargon, clearly explaining shipping vs. freight in simple terms. We’ll also explore when to use each method, helping you make smarter decisions when moving products from point A to point B.

Shipping vs. freight: A quick comparison

What is shipping?

Shipping is the process of transporting smaller, individual packages from a seller to a customer. Businesses might use this method for items that can be easily handled by a single person and don’t require special equipment for loading or unloading.

Shipping often refers to parcel delivery services from carriers like USPS, UPS, FedEx, or DHL. It’s ideal for most consumer goods, from clothing and electronics to small appliances and books.

The main advantages of shipping services include:

1. Speed
   Many shipping options offer fast delivery times, from same-day to 24-hour to next-day. 
2. Cost-effectiveness for smaller items
   Shipping rates are often more economical for individual packages.
3. Tracking capabilities
   Most shipping services provide detailed tracking information, which is great for the shipper and customer experience.
4. Flexibility
   Various service levels are available, from economy to express, allowing businesses to balance cost and speed.

Efficient shipping processes directly impact customer satisfaction, as today’s consumers expect quick and reliable deliveries, and 23% of consumers will abandon their online shopping carts if they find that delivery will take too long—a direct hit to your bottom line. 

What is freight?

Freight plays an important role in the commercial business ecosystem. Unlike standard shipping, which focuses on smaller individual packages, freight involves the transportation of goods in larger volumes or sizes, typically using pallets, crates, or shipping containers.

Freight is ideal for:

1. Bulk transportation
   Moving large quantities of inventory from manufacturers to warehouses or distribution centers.
2. Large item delivery
   Transporting products too big or heavy for standard shipping methods, such as furniture, appliances, or industrial equipment.
3. Cost-effective long-distance transport
   For shipments traveling long distances, freight can often be more economical than individual parcel shipping.

Important differences between freight vs. shipping

There are some key differences in terms of volume, cost, speed, handling, and intent. Understanding these can help you determine which method your business should use.

Volume and size

Most shipping carriers have size limits of around 108-130 inches in combined length and girth, with weight limits usually capped at 150 pounds, for shipping. Freight, on the other hand, is more suitable for restocking inventory or delivering large products like furniture or industrial equipment.            

For example, a pallet of 100 large board game boxes would typically be sent via freight, while individual game orders to end users would use standard shipping methods.

Cost

The cost structure for shipping and freight differs wildly. Shipping rates are typically based on package weight, dimensions, and distance traveled. For smaller items, shipping is more cost-effective, especially when factoring in the speed of delivery.

Freight quotes and costs are usually calculated by weight, dimensions, and the space occupied in the transport vehicle (often by pallet or cubic foot). 

While the per-item cost in freight can be lower for large quantities of goods, there are often minimum charges that make it less economical for smaller shipments. But for businesses regularly moving large volumes or big items, freight can offer substantial savings over time.

Speed and efficiency

With options ranging from same-day to several business days, shipping provides flexibility to meet various customer expectations. The extensive networks of major carriers ensure efficient routing and delivery.

Freight typically has longer transit times due to the nature of consolidating and moving larger shipments. For instance, expedited shipping can deliver a package across the country in 1-2 days, while freight might take 5-7 days for the same distance. But for bulk inventory moves or less time-sensitive deliveries, this slower speed is often offset by cost savings. 

Handling and care

Standard shipping methods are designed for individual parcels. This makes shipping suitable for most consumer goods, including fragile items, when properly packaged.

Freight requires different handling procedures, often involving forklifts or pallet jacks. It may not be suitable for fragile or high-value inventory. Certain items may require special crating or packaging to protect them during the more rigorous handling process.

Intent

The intention behind shipping is usually to deliver individual orders directly to end consumers. It’s customer-focused, with features like detailed tracking and delivery notifications that improve the buying experience.

Freight is often used for business-to-business (B2B) transactions or to move inventory within a company’s supply chain. While it can be used for customer deliveries of large items, the process is typically less end-consumer-oriented and may require additional coordination for final delivery.

For businesses, understanding freight logistics is even more important when:

• Restocking or warehousing inventory in bulk
• Offering large or heavy products
• Expanding to new markets, especially internationally
• Seeking to reduce shipping costs for high-volume orders

Is freight a type of shipping?

Broadly speaking, shipping is the process of transporting goods from one place to another. Under this definition, freight could indeed be considered a type of shipping. However, in practice, the terms are often used to represent different scales and methods of transportation.

Here’s how we can understand freight in relation to shipping:

• Shipping as an umbrella term
  In its broadest definition, shipping encompasses all methods of transporting goods, including freight. This perspective views freight as a specialized subset of shipping, focusing on larger volumes or items.
• Freight as a distinct category
  In everyday logistics terminology, freight is often treated as a separate category from shipping, primarily due to the scale and methods involved.
• Mode of transport overlap
  Both shipping and freight can use similar modes of transport (road, rail, sea, air), but the equipment and handling processes are significantly different.
• Business model implications
  Standard shipping often relates to B2C (business to consumer) transactions, while freight is more commonly associated with B2B (business to business) or large-scale inventory movements.

At Red Stag Fulfillment, we can help you navigate the spectrum from individual parcel shipping to incorporating freight shipping services, assuring you that you’re using the most efficient and cost-effective methods for your specific needs.

Optimize your logistics and make more informed shipping decisions

Recognizing the relationship between freight and shipping allows you to see your logistics options as a continuum rather than two distinct categories. This perspective can open up new possibilities for optimizing your supply chain, which may potentially reduce costs and improve efficiency as your business scales. 

Navigating these choices can be complex, which is where a knowledgeable 3PL partner can be invaluable. At Red Stag Fulfillment, we specialize in helping businesses find the right logistics solutions, even if that means recommending a different provider that better suits your needs.

Is it time to optimize your fulfillment strategy? Let’s start a discussion and explore how we can streamline your operations.