Freight
Freight refers to any commercial cargo, whether raw materials or finished goods, that is transported in bulk by air, sea, road, rail, or a combination of these modes. Under a contract of carriage, the shipper pays a carrier or forwarder to transport the goods from the place of origin to the place of destination.
Freight is fundamental to global trade. It encompasses full-container loads (FCL), less-than-truckload (LTL) shipments, break-bulk cargo, project cargo and express pallets. Each shipment is governed by Incoterms® which allocate the risks and costs between the seller and buyer. A bill of lading or air waybill serves as both a title document and a receipt.
Key cost drivers include distance, chargeable weight/volume, fuel surcharges, handling requirements (e.g. temperature control, dangerous goods), customs duties and accessorial fees (e.g. demurrage and detention). Thanks to IoT sensors and carrier APIs that sync with Transport Management Systems (TMS), visibility has shifted from milestone updates to live ETA predictions. Carbon reporting is now standard, with shippers requesting CO₂ emissions metrics in grams per tonne kilometre to meet Scope 3 targets.
How is freight handled on a daily basis?
Freight is managed through a dedicated global forwarding structure that orchestrates door-to-door air, ocean, road, and rail solutions across an extensive international network. Proprietary air networks can secure uplift capacity between major trade lanes such as Asia, Europe, and the Americas, while long-term carrier agreements help mitigate risks related to ocean freight capacity.
A multimodal engineering approach integrates rail, barge, and short-sea solutions to significantly reduce CO₂ emissions, sometimes by up to 70% compared to traditional road transport. For example, certain rail corridors in Europe generate substantially lower emissions than equivalent road routes.
Digital platforms provide real-time tracking data, integrate with customers’ ERP systems, and anticipate potential delays by predicting dwell times, enabling proactive resolution before service levels are affected. Sustainability tools, such as carbon calculators, allow customers to select lower-emission routing options while maintaining required transit times and service performance.
FAQ
What is the difference between freight and parcel?
Parcels typically weigh less than 70 kg and are transported via hub-and-spoke courier networks. In contrast, freight exceeding this weight or dimensional limit is palletised, containerised or otherwise consolidated. Therefore, freight follows tariff-based pricing rather than flat parcel rates.
How are freight rates calculated?
Carriers start with a base rate per kilogram or per container, to which they then add fuel, peak-season, security and congestion surcharges. Dimensional weight rules apply to low-density cargo, while spot premiums arise when capacity is limited.
Which freight mode is the fastest and which is the most sustainable?
Although air freight offers the shortest transit times (1-3 days for intercontinental journeys), it has the highest CO₂ intensity. Ocean freight is slow (20–40 days door-to-door), but is four to five times cleaner per tonne-kilometre. Rail/road combinations offer a balance of speed and emissions, and GEODIS often recommends them for intra-European lanes.