Guide to Small Freight Shipping

Smaller shipments come with their own set of challenges—from higher per-unit costs to more complex logistics. This guide breaks down everything you need to know to ship small freight efficiently and affordably.

You'll learn the basics of LTL and PTL shipping, how to consolidate loads and reduce costs, tips for packaging and documentation, and how to navigate international shipping requirements. Whether you're shipping domestically or cross-border, this guide helps you make smarter decisions every step of the way.

The Basics of Small Freight Shipping

In simple terms, goods shipped by small cargo or small freight will weigh over 150 pounds and require the use of a trailer truck (not ship), whereas commodities weighing less than 150 pounds are usually shipped through a shipping carrier like DHL, Fedex or UPS.

When it comes to shipping sizes, the two most common are less-than-truckload (LTL) freight, weighing between 150 and 20,000 pounds, and partial truckload (PTL) freight, weighing between 8,000 and 27,000 pounds.

As the logistics manager of a small business, you likely won't have 8,000 pounds or more in inventory to ship, so you'll be focusing on the smaller LTL shipping. This will save you in cost, since you share trailer space.

If you're new to LTL freight shipping, you may worry about escalating costs due to the fluctuating nature of transportation's pricing market and the costs of differing service options. However, there are plenty of LTL shipping options for smaller cargo offering specialized solutions to fit a business' specific needs.

And you can further maximize your return on investment with a transportation management system.

Consolidation and Cost Optimization Strategies

Cost optimization is especially important for small business owners (SBO) on a tight budget. Not only does combining small shipments into one shared load reduce the per unit cost of shipping and simplify shipping management, it also reduces the risk of damaged goods or lost cargo.

One way to reduce costs when transporting goods is by consolidating small loads into shared containers, trailers or trucks, as is the case in LTL freight. This has the added benefit of reducing inefficiencies in shipping logistics — combining smaller shipments into one transport makes it easier to plan and track transportation versus using multiple carriers.

Small freight shipping companies specializing in small cargo shipping options like LTL are more likely to offer custom solutions, giving SBOs and individuals even more options for cost saving techniques for freight shipments.

Mitigating High Per-Unit Shipping Costs

One way to ensure high per-unit shipping costs and efficiencies in shipping processes is to split shipments. A split shipment occurs when a single order with several products is sent in multiple shipments.

To avoid the costs associated with split shipments, it is best to always group and/or schedule shipments together. Some best practices to follow when grouping and scheduling shipments include:

• Keep stowage in mind. Having uniform packaging makes goods easier to handle, less likely to be damaged and less likely to waste space in a trailer, reducing the overall cost of transportation and per-unit pricing.
• Plan the most efficient shipping routes to reduce fuel costs and transportation time. Using shipment planning and management software can help optimize route selection and provide analytics to help make better data-driven decisions in future shipments.
• Discuss shipping volume discounts with LTL carriers. Shipping companies are more likely to offer lower costs when a higher volume of goods are being shipped through their service.

The Best Small Freight Shipping Companies

Choosing the right small freight shipping company to handle your LTL freight shipments can require a bit of research, but ultimately comes down to your individual business needs.

Some of the most well-known freight carriers that specialize in small cargo shipping:

• Old Dominion Freight Line
• ABF Freight
• Estes Express Line
• Averitt Express
• Southeastern Freight Lines
• XPO
• FedEx Freight
• Saia LTL Freight
• R+L Carriers
• Roadrunner Freight

Shipping Small Freight Internationally

Shipping freight internationally comes with its own list of challenges. For example:

• International service coverage is limited, as not all LTL carriers provide international services, and those that do may be limited to regions, depending on which country the carrier is based out of.
• Documentation can often be laborious and complex, as different regions of the world have their own shipping regulations and regulatory compliance standards.
• Specific permits are required for the regions you are shipping to and from, especially for regions such as Canada and Mexico.

Online shipping management tools and freight pooling services can help simplify international shipping logistics and reduce much of the administrative burden of global shipping.

How To Ship Small Freight

Shipping small freight is a complex process. A lack of proper guidance and management often leads to delays and increased costs.

To mitigate this, you should ensure you understand the many steps in shipping small freight.

1. Check Your Carrier's Qualifications

You'll want to make sure the carrier you choose offers the qualification and services you need to safely and efficiently deliver the goods you ship. Some specific key factors to evaluate when selecting a small freight shipping carrier include:

• Accounting of Safety Records: The LTL carrier you choose should have a good record of safety policies and practices.
• Specialty Shipping Services and Equipment: The LTL company should be able to overcome the unique challenges your shipments have, whether that be with specific services or equipment.
• Customer Reviews and Company Reputation: The company should have good reputation, reliability and customer satisfaction.
• Service Coverage: The LTL company you choose should be able ship to the areas you service.
• Insurance and Certification: The LTL carrier should be able to provide proof of current certifications as well as offer the necessary insurance options for your shipping needs.
  
  

2. Package Your Cargo

Properly packaging cargo is essential to optimizing shipping costs, ensuring goods are stowable, easy to handle and remain undamaged to mitigate loss. The manner in which you pack cargo will depend on a number of factors, including cargo type, label requirements, and pallet or crate requirements.

Some cargo types have specific packaging needs. For example:

• Fragile items should be marked “Fragile” and packaged separately with packing filler, bubble wrap or pellets, to minimize the chance of shifting.

Refrigerated or temperature-sensitive items should be labelled with their temperature requirements and packaged in heat-resistant or cooling packaging material, sometimes with ice packs or even cold ice, to maintain stability and freshness.

Depending upon the type of shipment and the type of goods you are transporting, a crate or pallet (in the case of LTL freight) may be required. In the case of a pallet, keep in mind the following guidelines and tips: 

• Pallet Size: Pallets should not be stacked higher than 84 inches, but some carriers have their own restrictions, so check their guidelines first.
• Pallet Limit: Check the pallet limit for your carrier — some LTL carriers limit you to six pallets per shipment.
• Stability: Use a packing base for proper stability, and stack boxes uniformly, at the recommended maximum height and weight. Avoid overhang or uneven stacks.
• Wrapping: Wrap packages with stretch wrap, layering it from bottom to top and back down again to add even more stability and avoid damaging goods and losing packages.

Following the above recommendations will help ensure your goods are protected and that you remain compliant with carrier requirements.

3. Prepare Your Documentation

Properly prepared documentation can help mitigate issues with shipping logistics, lessen the risk of unexpected costs due to improper freight classification and reduce damaged goods.
Below is a list of essential documents required for small freight shipping:

• Bill of Lading (BOL): Details the freight being shipped and can include carrier name, driver signature, shipping date, description of the goods, names and addresses of both shipper and receiver, and special instructions for the carrier.
• Freight Bill or Freight Invoice: Contains total shipping charges, freight shipping fees, and other accounting data.
• Inspection Certificate: Certifies goods have been inspected and are in compliance with the terms of the BOL. This is not always required, depending on the type of commodities being shipped.
• Proof of Delivery (POD): Signed by the receiving party confirming receipt of goods and confirming no damage is visible. It should contain delivery date and time, name and/or title of the receiver, and a list of received items.

For small cargo freight shipped internationally, the following documents are common:

• Certification of Origin (CO): Identifies where the shipped goods were created. The CO is certified by the chamber of commerce or other regulating body.
• Commercial Invoice: Helps customers and clearance with the assessment of duties or taxes. Also known as a proof of sale.
• Customs Invoice: Declares the value of goods being shipped. It is used to clear customs.
• Letter of Credit: Acts as a promissory note by a bank on behalf of a consignee to the seller. It should have the dollar amount in the transactions currency and is essentially a form of payment used in international trades.
  

4. Set Up Insurance

Insurance is important to ensure a company's goods are protected against loss, theft or damage in the event of a shipping mishap. There are different forms of insurance available depending upon what the freight carrier provides and the type of goods being transported. In general, the different types of freight shipping insurance include:

• Basic: Covers what is known as “limited perils.” This will vary by carrier or insurer and often only covers specific types of damage and may exclude certain categories of items.
• Named perils: Protects from specific hazards or risks. If damage occurs outside of the “peril” listed, the insurer will not cover it.
• All-risk: Covers cargo regardless of the cause of damage, loss or theft.
  Contingent: Acts as supplementary insurance that seeks to fill gaps in your primary insurance coverage.
• Broad: A mid-level insurance that covers more than basic policies, but less than all-risk.
• Total loss-only: Covers cargo in the event of a “total loss” of cargo.

To be certain your cargo is properly covered, consult with an insurance provider to discuss your needs, budget and goods being shipped.

5. Timing and Tracking

iTiming and tracking freight shipments can be a tricky endeavor, especially when temperature-controlled or cold chain supplies are involved. While proper packaging and the use of refrigerated trailers can keep these types of goods safe, special considerations need to be made in the event there is a delay or breakdown in the transportation process.

This is certainly true for LTL shipments, where transit times are often longer or delayed because of the multiple stops associated with consolidated shipping methods. Remember: LTL freight is shared with other shipments, which must be delivered and handled separately from your own.

To help with this, shipment management and shipping tracking tools are recommended, as they can provide improved visibility into best shipping routes, shipping tracking and location, and delivery predictability.

6. Communication

Communicating effectively is key to avoiding delays, hazards, and breakdowns in logistics. This is doubly true when dealing with cargo that is fragile, time-sensitive or temperature-controlled.

To ensure proper communication:

• Agree on preferred communication methods. Choose a primary means of communication for all parties involved. This can include mobile phones, email, messaging apps, or other devices.
• Choose a backup communication method. In the event the primary communication method does not work (such as a cell tower outage), agree upon a secondary means of communicating.
• Set an acceptable response-time. In emergency situations, you will want to know how long to wait before you try another party or another communication method.
• Provide backup contacts. In the event you cannot reach a given party, you will want to have one or more individuals to contact to avoid a breakdown in the chain of communication.
• Set clear expectations for communication and ensure everyone understands them.
  Implementing the above communication standards should help ensure goods arrive on time, intact, and safely.

Mitigating Delays Through Proper Documentation

Lack of proper documentation can lead to many issues during the shipping process, especially when handling cross-border small freight shipments. If documents are inaccurate — or worse, missing — it can halt shipping indefinitely.

For instance, failing to provide a Certificate of Origin can make it so your shipment cannot cross borders, while a poorly detailed Packing List could result in manual inspection that could take hours.
Ensuring all the necessary shipping documents are filled out properly, are in hand, and are kept in a safe and easily accessible place will go a long way towards reducing delays in cross-border shipping.

Regulatory and Documentation Essentials

Meeting customs compliance and local regulations for small freight shipping can be a difficult and intimidating task, as each region will have its own “dos and don'ts.” Be sure to pay particular attention to documents pertaining to Customs Clearance.

Prior to arranging freight or cargo to a cross-border or international region, be sure to study the area's customs documentation requirements.

In addition to discussing the matter of customs clearance with your carrier, you may also want to consider using a digital freight platform, which can help ease the burden of custom compliance and local shipping regulations.

Risk Management and Insurance

Small freight is especially vulnerable to damage and loss, due to the nature of consolidated shipping. We recommend performing a structured risk assessment to outline any foreseeable risks or challenges that may arise. From there, you should choose your insurance based on the likelihood of those “perils.”

A structured risk assessment can counter potential financial setbacks in most cases. To better understand risk mitigation strategies for small cargo shipments, we recommend you read a comprehensive guide to transportation operations.

Planimatik: Small Cargo Shipping Made Easy

A lot of planning and effort are involved to ensure your small cargo shipment arrives safely and on time. To help mitigate risks; optimize shipping costs; and untangle the complicated web of local, cross-border and international small freight shipping, we suggest considering Planimatik's digital freight management platform.

Our freight management solutions can help transportation coordinators manage small cargo shipping efficiently with features quoting, scheduling, back-office assistance and integrations with multiple common carriers. Contact Planimatik for a demonstration of our digital freight platform.