What Is a Freight Delivery Company?

What Is a Freight Delivery Company? thumbnail
A freight delivery company is responsible for shipping items.

The job of a freight delivery company is to handle the actual shipping process involved with moving items from the point of origin to the point of delivery. The term "freight" is understood to mean any item or group of items that are larger than packages that are normally handled by couriers and local delivery companies. A freight delivery company provides services involving documentation, piece counts and proof of delivery besides the actual delivery of the items being shipped.

  1. Definition of Freight Delivery

    • "Freight delivery" is a term that is used to describe not only the shipment but also the entire process itself. The freight industry has its roots in ship cargo freighters and freight trains from years past, but today's understanding of a freight delivery company is more toward trucking companies who deliver locally, regionally, and statewide. This service is achieved through the use of a variety of vehicles such as cargo vans, boxtail trucks, bobtail trucks and tractor-trailer combination trucks.

    Freight Delivery Process

    • A typical freight delivery company provides basic pickup-and-delivery service. This process begins by taking delivery orders by phone or online. Information needed for a freight order usually includes the point of origin and any special requests at pickup (palletizing, wrapping or special documentation needed, such as hazardous material placards) as well as point of delivery location, special considerations as to dock assignment or curbside delivery (especially in busy downtown areas), and the desired time frame for completion of the delivery.

    Freight Handling

    • The pickup of freight includes an accounting of the exact quantities being shipped (piece count) and a general description of the freight to be itemized on the shipping bill (or bill of lading). All documentation related to the handling of the shipment at the point of delivery is generally the responsibility of the shipper and the receiver, although the freight delivery company will be involved in the delivery scheduling and the holding of the freight in some cases. This may include storage in a warehouse or other facility overnight or for a pre-determined time that has been agreed to before the pickup order has been completed.

    Freight Transfer

    • Once the freight delivery company has picked up the shipment, it is the company's responsibility to ensure the security of the freight until it reaches its destination. This aspect is covered under insurance policies that are required of freight delivery companies. The size and scope of the company's business determines the coverage offered to the shipper, and larger freight delivery companies routinely carry million-dollar liability policies to cover any damage that occurs during the transfer process, including the time freight is actually on a truck and when it is being stored by the delivery company.

    Proof of Delivery

    • The freight delivery company must ensure that the shipment arrives in a complete and satisfactory condition at the point of delivery. Efficient freight delivery companies will engage in piece counts at each point of transfer, from the point of origin through the storage process to the drop-off point on the receiver's dock. Once the receiver has accounted for the shipment to their satisfaction, they will sign the shipping bill verifying the successful receipt of the freight according to the contractual agreement between the shipper and the freight delivery company. This action, known as the proof of delivery (P.O.D.) effectively ends the responsibility, and the liability, of the freight delivery company.

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  • Photo Credit blank yellow big delivery truck on road image by alma_sacra from Fotolia.com

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