Shipping logistics can often seem like a maze of confusing terms and choices, especially when trying to distinguish between “cargo” and “freight”. Especially when running an e-commerce business or making international deliveries, knowing the difference is crucial to optimizing your supply chain. In our guide, you'll learn the key differences, benefits, and best use cases for each. Let SeaRates be your compass as you navigate the complexities of global shipping and optimize your logistics strategy.
Explain the shipping term: What the "cargo" delivery is?
Let's start with a brief Logistics Glossary to get acquainted with this type of transportation:
The effective use of cargo delivery can optimize the entire e-commerce supply chain because cargo delivery is the transportation of small and medium-sized commercial goods. No need to transport bulky or oversized goods? Arrange profitable logistics for short-haul cargo. There are popular niches among them, for example:
- parts for electronic equipment;
- appliances: printers, TVs, phones, smart watches, etc.;
- auto parts;
- clothing and footwear;
- goods for children (toys, pacifiers, children's clothing, etc.);
- jewelry;
- leather goods (backpacks, bags, and other accessories).
Such goods are in demand on marketplaces, and their efficient and inexpensive cargo delivery is developing e-commerce opportunities for import and export.
"Cargo" delivery features
Compulsory insurance
Let's not wait for the most important point and emphasize the need for cargo delivery guarantees. The supplier is not responsible for the safety, quality, and proper transportation of the goods. Shippers and sellers are responsible for obtaining photo reports and insurance to continue cooperation. So let's move on.
Favorable pricing
Reducing the cost by 20-30% is a standard price difference with the freight shipping that a customer can expect. The main reason for such savings is LCL delivery, because with this format, several customers buy space in cargo containers, receiving both guaranteed space for small cargo and no overpayments for empty compartments. Cargo delivery is designed for the transportation of small and medium-sized commercial goods - from 20/30 kg to 3 tons (the latter figure is the carrying capacity of the smallest container).
Speed
This parameter is also at the top of the advantages of cargo delivery. For air cargo transportation, unlike freight, you can receive your goods in a few days on a passenger flight transported in the cargo section of the aircraft.
Easy tracking
With the bill of lading or air waybill number from your cargo operator, you can track your cargo by sea, land, or air delivery.
Volume restrictions
Cargo imposes certain restrictions on the weight, dimensions, and number of items in one shipment. Usually, one check can contain 2-3 items with a total weight of up to 50-100 kg.
Packaging
The requirements for packaging for cargo delivery are quite strict. Each item must be compact, not fragile, and in sealed original packaging. The cargo may not be accepted for improper packaging.
"Cargo" delivery scheme
Choosing a supplier
A well-considered choice of a supplier (manufacturer, wholesale warehouse, or large retail marketplace) should be based on the guarantees, reputation, reliability, and clear delivery terms provided by the one you select. Those are the main arguments against relying on private entrepreneurs for your cargo transportation needs. The power of networking helps to expand the possibility of finding a reliable partner in developing digital forwarding communities like the Digital Freight Alliance. DFA members take full advantage of the opportunities to expand their influence in local and regional markets through effective partnerships with reliable freight forwarders and other logistics providers of all sizes, specializations, and needs. Thus, shippers are also confident in the vendors’ & carriers' reliability when booking with SeaRates.
Booking & Payment terms
Registration for a cargo delivery is carried out for a specific order batch, taking into account such characteristics as the exact quantity, parameters, colors, packaging, accompanying transport documents, etc. Later on, you agree on an advance payment to guarantee further operations.
Cargo handling & Warehouse operations
Your shipment is sent to the warehouse in the country or city of departure, where the warehouse operator verifies the condition of the goods according to the provided specifications and ensures that the packaging is correct. If this stage of verification is successful, your cargo is accepted and weighed. Then an air waybill for air cargo shipping or a bill of lading for sea/rail/road transportation is generated, as well as a tracking number. As a customer, you receive a copy of the bill of lading/air waybill.
Transportation
Your shipment is loaded onto a transport vehicle destined by the required route. Upon arrival, your freight forwarder's representatives pick up the shipment and deliver it to the warehouse for inspection - all that's left to do is to ensure the integrity of the goods and prepare for customs clearance.
Customs
Customs clearance is a key point for any type of cargo delivery, as it is necessary to ensure the accuracy of all transport and customs documentation. The best option for the customer is to personally pick up the cargo at the departure point and provide documentation, but this can also be done by the cargo operator's employees.
Final stage
At last, you have been notified of the delivery success by the cargo company to receive the cargo at the appointed date and place. Now all you have to do is pay any remaining delivery charges and sign the cargo acceptance certificates.
What's the Difference Between "Cargo" vs. Freight Shipping?
Let's take a look at the difference between freight and cargo transportation and finally resolve the confusion on both terms:
| Parameter | Cargo | Freight |
| Cargo volume | Small or medium consignments | Large consignments, heavy loads |
| Type of transport | Can be any: aircraft, vessel, truck, wagon | Usually large vehicles: container vessels, aircraft, trucks |
| Frequency of transportation | Regular deliveries, often for small businesses | Less regular, but larger deliveries |
| Price | May be higher for small batches | More economical for large batches, but more expensive for small batches |
| Transportation control | Standard, common transportation routes are used | More control over the cargo and route |
| Customs clearance | Often included in the service package | Separately, depending on the booking agreement |
| Transportation options | Fixed services | Flexible agreements on the terms of transport lease |
| Type of cargo | Standard goods that do not require special conditions | Oversized, heavy, or special cargo (e.g., dangerous) |
| Delivery speed | Fast, especially by air (usually up to a few days) | Slower, especially by sea (weeks or months) |
| Customs and administrative issues | Customs clearance is often included in the service | May require separate contracts and more control |
| Combined transportation | Often used for multimodal deliveries | Possible, but more suitable for large shipments |
| Cargo insurance | Usually included in basic services | Requires separate agreement or additional insurance |
| Route flexibility | Fixed routes and schedules, less flexibility | More flexibility in loading times, but may cost more |
| Impact on the supply chain | Suitable for frequent small shipments, quick replenishment of inventory | Suitable for large planned batches and seasonal deliveries |
| Economic feasibility | Expensive for large batches, but beneficial for small batches | Beneficial for large batches, but unprofitable for small batches |
Here are a few more extra tips:
- For a simplified definition, you can just remember that any shipment weighing less than 150 pounds (ca. 68 kg) is considered cargo transportation, and anything over that is called freight.
- In addition, cargo is not only a designation for consignments but is also used to name companies that provide transportation and customs services. On the other hand, “freight” is used not only to describe the goods but also the entire transportation process.
- You will also definitely find the meaning of the term “freight” in the context of payment for transportation with the “tariff/rate”. In turn, “cargo” is used without reference to payments, as it applies to almost any transported goods.
Smart e-commercializing
Economic benefits for low-volume consignments
It is possible to ship a small volume profitably, even if you have not loaded a full container. With cargo delivery, there is no need to consider high operating costs, maintenance, extensive insurance coverage, and other aspects inherent in freight transportation.
Optimize your costs with favorable market rates for cargo delivery through our online Freight Calculator - Logistics Explorer, or fill out a quick request form directly to the SeaRates team.
A wide range of cargo types
A cargo operator and seller, as a freight forwarder and shipper in freight transportation, can use the complete capabilities of the Logistics Map tool to find favorable offers and promote their cargo transportation rates. Requests for the carriage of various cargoes with a variety of requirements, from special temperature conditions to multimodal modes, are placed under the 'Cargoes' tab and are available for direct booking on the terms of both parties.
Scale your business with the Transport Management System
As your transportation business grows, so does the volume of orders, the global reach of your fleet services, and the complexities that come with it. To automate logistics and trade, you need a reliable solution that provides a data structure for every detail of the vehicle - from characteristics to location and scheduled pickup. Online fleet management allows providers to grow quantitatively and qualitatively in local and global markets. Need to find customers for specific destinations for your vessels or trucks? Do you require an automated promotion of your services with transparent rates that are immediately visible to shippers around the world? Learn more about Logistics Map's capabilities from the 'Transport' panel and try the tool now.
Prompt customer service
Cargo delivery requires specialized warehouses, such as:
- Temporary storage warehouses
- Customs warehouses for international delivery
- Warehouses-consolidation centers
- Distribution centers
- Warehouses with special storage conditions for perishable goods
You can optimize your cargo delivery by promoting your warehousing rates and generating leads in different regions of the world. Delays in deliveries are minimized due to the transparency of warehouse locations, prices, scope of services, availability dates, and other information needed to plan the entire supply chain.
Full transparency of operations
After shipping goods, you and your customers have access to 24/7 real-time cargo tracking with detailed data on routes, vehicles, logistics events, and other aspects of transportation. E-commerce cannot ignore the opportunities to ensure supply chain transparency, as speed and efficiency are the keys to successful deliveries without complaints and loyal customers' guaranteed returns. In addition, the integration of the API for Tracking System & Air Cargo Tracking allow your current and a wider audience to check the status of their order at any time through your CRM/TMS/ERP system.
Find more integration options and request an IT quote from our team to improve your logistics services by customizing SeaRates tools to meet your needs.
Let’s find the right shipping mode for you
Understanding the advantages and intricacies of cargo delivery makes it easier to choose the best option for your business. Speed and reliability, turnkey delivery with customs clearance, flexibility, and inventory management - each component will be faithfully executed to ensure the safe transportation of your goods.
Let us know about your needs, such as seasonality of goods, operational cargo tracking, multimodal logistics, transparent trade, cost optimization, insurance, and many others. Learn more about the extensive international logistics and trade experience of the SeaRates team and get a free consultation with our experts.
Stay in the thick of things and gain the best international logistics experience by contacting us at [email protected].
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