10 Freight Shipping Myths and Misconceptions: Separating Fact from Fiction

The freight shipping industry has evolved rapidly, especially with the advent of technology, automation, and the increasing complexity of global trade. However, outdated practices and misinformation still persist in some parts of the industry. Misconceptions often stem from older models of shipping that no longer accurately reflect current realities. 

Understanding the true dynamics of freight shipping is crucial for businesses to control costs, ensure timely delivery, comply with regulations, and mitigate risks. Here are 10 commonly misunderstood myths about freight shipping, and the realities that can help your business improve operational efficiency and gain a competitive advantage in today’s interconnected marketplace. 

Myth #1: The Cheapest Quote Is Always the Best Deal

The Reality

The cheapest freight quote can be tempting, but it doesn’t always provide the best value or service quality. You’ll often find hidden fees like fuel surcharges and accessorial services; low-cost carriers may also cut corners that affect reliability. This leads to poor communication, damaged goods, and delays, negatively impacting your business.

Consider, too, the long-term impacts that can drive up the total cost beyond the initial shipping price. If a shipment is delayed or damaged, for example, the additional replacement costs combined with inventory disruptions and potentially lost customers can far exceed any savings from choosing the cheapest quote. 

Myth #2: All Freight Carriers Offer the Same Service

The Reality

Freight shipping is a complex industry, and carriers vary significantly in their specializations, geographic coverage, equipment, capabilities, service levels, and technology integration. 

Freight carriers often specialize in particular cargo, services, transportation modes, or industries, all of which can influence the equipment they provide and make a significant difference in how efficiently and safely goods are handled. A carrier specializing in refrigerated shipments, for example, will offer unique equipment and handling capabilities that a general freight carrier doesn’t.

Carriers can also differ significantly in their geographic reach, with some having extensive national networks, and others more regionally focused. This can affect transit times, reliability, and costs.

Not all carriers offer the same level of service, which can include factors like speed, reliability, and customer support. Some carriers may offer expedited shipping with guaranteed delivery times, while others may only offer standard service, which could have less predictable timelines. 

With the growing adoption of freight technology trends, carriers vary in how much they integrate technology into their operations. Some may provide advanced tracking systems and predictive analytics, while others may offer more basic systems (or none at all), leading to differences in how shipments are monitored and managed.

Myth #3: Insurance Isn't Necessary if Using a Reputable Carrier

The Reality

Even reputable freight carriers have liability limitations, and they may not cover the full value of your goods in the event of damage or loss. In certain situations a carrier’s liability may not apply, or their coverage may have exclusions, such as damage caused by natural disasters or improper packaging. These gaps could expose your business to substantial financial loss.

While insurance adds an extra cost to shipping, it is often a wise investment, especially when considering the potential costs of a loss.

Myth #4: Freight Class Doesn't Matter Much

The Reality

Freight class is critical in determining both pricing and the accuracy of the shipping process. Carriers use freight classification to calculate rates and determine how your shipment will be handled, stored, and transported. Underestimating or misclassifying shipments can lead to unnecessary expenses and affect the efficiency of loading, transit, and unloading processes.

Common mistakes include recording incorrect weights or dimensions and misidentifying commodities. For example, a dense, compact item might be mistakenly classified as a lower class, resulting in a shipping cost far below its actual value. On the other hand, a fragile or oddly shaped shipment might be inaccurately assigned a higher freight class than necessary, inflating the shipping cost.

Myth #5: Small Businesses Can't Access Quality Freight Services

The Reality

Advancements in technology, the rise of freight brokers, and strategic shipping options have opened up more opportunities for small businesses to get competitive, efficient freight services that were once reserved for large enterprises. 

Freight brokers can negotiate better terms and rates, as well as handle the complexities of carrier selection and coordination. Advantage tech tools like automated booking systems, real-time tracking, and predictive analytics are now accessible to businesses of all sizes. Modern platforms like digital freight marketplaces enable small businesses to compare rates and shipping options and book shipments all from one place.

Flock Freight’s patented FlockDirect® Shared Truckload (STL) solution uses algorithms and machine learning to match compatible shipments and fill available trailer space, giving small businesses access to truckload shipping—and the enhanced safety and efficiency that come with it—without paying the cost of an entire truck.

Myth #6: Transit Times Are Set in Stone

The Reality

The dynamic nature of the freight industry means several variables can impact transit times. Weather, traffic and road conditions, supply chain disruptions, and transportation methods can all affect delivery. External influences like global fuel prices and availability, international events, and freight demand can significantly impact transit windows and reliability.

Planning and risk management are essential for maintaining realistic expectations. Businesses can take steps such as adding buffer time, utilizing telematics and real-time tracking, and having alternative route options in the event of unplanned disruptions. Clear communication between all parties is key to minimizing the impact of delays. Using Truckload and STL shipping modes, both of which travel on direct routes, can also help offer more predictable transit times.

Myth #7: Packaging Doesn't Matter for Large Shipments

The Reality

Proper packaging for large freight can significantly influence the shipping process, from cost to safety. A large shipment that’s poorly packaged or measured leads to freight class miscalculations and higher shipping costs. Overly bulky or inefficiently packed shipments may require more space, while well-packed items allow more goods to fit in the same space, optimizing freight and lowering costs. Effective packaging also prevents damage from physical impact or environmental factors, helps facilitate easier and safer handling, and avoids even more money spent replacing broken products.

Plus, if a shipment is packed incorrectly or doesn’t meet required standards, the carrier may have legal grounds to refuse liability for any damage incurred during transit.

Myth #8: Truckload Is Best for Anything Larger Than LTL

The Reality

Shippers have more cost-effective options for mid-size shipments larger than LTL but don’t fill up an entire truck. The first is Partial Truckload (PTL), which is optimal for shipments between 10,000 and 40,000 pounds. PTL gathers and groups partial loads together in a warehouse, then sends them all on the same truck, bypassing the LTL hub and spoke system and making for a more direct shipping route with minimal stops and quicker transit times.

With Shared Truckload (STL), shippers can get the benefit of truckload routes without paying for full truckload costs. STL also pools cargo that is traveling together on the same route and bypasses the hub and spoke system. But STL also avoids warehousing altogether by algorithmically combining shipments before pickup. The shipments are loaded and unloaded once, further reducing damage risks.

Myth #9: Technology Hasn't Changed Freight Shipping

The Reality

Freight carriers now have access to more sophisticated tools and algorithms that improve the efficiency of their delivery routes, reducing costs, fuel consumption, and delivery times. With GPS, RFID tags, and IoT devices, shippers and customers can monitor the exact location of shipments at any moment. Electronic bills of lading (eBOL) and digital invoicing have reduced the likelihood of human errors and streamlined the paperwork process. Real-time rate shopping allows shippers to compare the most competitive rates from multiple carriers instantly and helps customize quotes to any specifications.

Another emerging freight technology is blockchain, a decentralized record of transactions that is distributed across multiple computers. This transparent permanent record can enhance security and visibility across the supply chain, such as tracking cargo, verifying documents, and handling payments.

Myth #10: Claims Processing Is Always a Nightmare

The Reality

Claims processing has significantly improved thanks to technological advancements, more streamlined processes, and better communication between parties. Modern advancements like digital submissions and automated notifications have led to faster filing and resolution times. 

Should you need to file a claim, clear and detailed documentation helps ensure it’s processed correctly and quickly. Make sure you have all requested paperwork, such as BoLs, delivery receipts, proof of loss, proof of value, and inspection reports. Keep records at every stage of the shipping process, and act on any damage immediately. Take photos, note the time and date, and report it to your insurer as soon as possible. Be aware of submission deadlines, as filing delays could result in denied claims.

Of course, the best protection against nightmare claims processing is prevention. Make sure your shipments are properly packaged and documented, and choose a reputable carrier traveling on an optimized route to lower the risk of damage or loss.

Moving Forward

In today’s fast-paced global economy, understanding the truth behind common myths isn’t just beneficial—it’s crucial for success. By partnering with knowledgeable experts and continually educating themselves on best practices, businesses can navigate the complexities of freight shipping more effectively.  Staying informed about the latest industry trends can help companies of all sizes improve efficiency, reduce costs, and ultimately gain a competitive edge.