Freight carriers
What are freight carriers?
Freight carriers are companies that transport goods from one location to another. Carriers operate across road, air, ocean and rail, and they range from large national trucking networks to regional operators and specialized providers. The right carrier for any shipment depends on the mode, distance, cargo type and service requirements involved.
Types of freight carriers by mode
Road (motor) carriers
Motor carriers are commercial operators that move freight by truck. Trucking is the dominant domestic freight mode in the United States.
Common trucking service types include:
Truckload (TL): The shipper's freight fills or is priced as filling an entire trailer. Truckload service provides direct transportation with fewer intermediate stops.
Less-than-truckload (LTL): Freight from multiple shippers shares trailer space. LTL is generally more economical for smaller shipments but can involve longer transit times because of multiple pickups and deliveries.
Volume or partial truckload: A shipment uses more capacity than typical LTL freight without requiring a full trailer. This option can work for larger shipments with some flexibility around timing.
Parcel: Small packages are transported through parcel networks, typically using smaller vehicles and standardized services.
Final mile: The last leg of delivery from a transportation hub to a home or business. Final mile services may include additional offerings such as assembly, installation or haul-away.
Common trucking equipment includes dry van trailers (enclosed, weather-protected), flatbed trailers (open, multi-use), refrigerated trailers, step-deck trailers, removable gooseneck (RGN) trailers and specialized custom-built equipment for oversized or unusual cargo.
Air cargo carriers
Air carriers move goods by plane. Air freight is generally the fastest and most expensive transportation mode, making it best suited for time-sensitive, high-value or perishable shipments where speed justifies the higher cost.
Ocean carriers
Ocean carriers transport goods on cargo ships and specialize in high-volume, long-distance international shipments. Non-vessel operating common carriers (NVOCCs) arrange ocean transportation services without owning vessels, acting as intermediaries between shippers and ocean carriers.
Rail carriers
Rail carriers transport goods by train and are well-suited for bulky or heavy freight moving over medium to long distances. Rail can be more cost-effective than trucking for appropriate lanes and cargo types and generally produces lower carbon emissions per ton-mile.
Intermodal carriers
Intermodal carriers combine two or more modes—typically truck and rail—to move goods in a standardized container without handling the cargo when switching modes. Intermodal is cost-effective for large, heavy or bulk shipments traveling long distances.
How freight carriers are selected and managed
Selecting the right carrier involves balancing transportation cost, service requirements, capacity and past performance. Businesses may evaluate carriers based on factors such as:
Rates and contract terms
Available capacity
Transit times
On-time delivery performance
Claims and damage history
Equipment availability
Geographic coverage
Service requirements
Ongoing carrier management helps businesses monitor these factors after a carrier has been selected. Carrier performance data can inform future carrier selection decisions and help businesses identify opportunities to improve service and control transportation costs.
How freight carriers price their services
Carrier pricing follows several models depending on the relationship, shipment requirements and market conditions:
Contract rates: Long-term pricing for specific lanes and freight volumes, often established through annual request for proposal (RFP) processes. Contract rates provide stability and predictability for both parties.
Spot rates: One-time transactional rates based on current supply and demand in the freight market. Spot rates can be useful when contracted capacity is unavailable or for one-off shipments.
Line haul: The base charge for transporting freight between an origin and destination, excluding additional services or fees.
Accessorial charges: Additional fees beyond standard transportation charges, such as detention, fuel surcharges or liftgate service.
How technology helps manage freight carriers
A transportation management system (TMS) gives shippers a centralized platform for carrier management and rate comparison across all modes.
Key capabilities include:
Faster carrier onboarding: Automated onboarding workflows reduce the time required to add and qualify new carriers to a network
Carrier network optimization: Data-driven insights identify high-performing carriers and determine where carrier selection criteria should change
Centralized rate management: Storing carrier rate information in one platform makes rate comparison faster and more accurate
Carrier collaboration: Integrated communication tools help shippers coordinate with carriers, track shipments and resolve issues more quickly
Real-time visibility: Live shipment updates help identify delays and support proactive exception management