There can be some confusion between the terms ‘freight’ and ‘cargo’ when it comes to cargo transportation solutions. Both terms are used to communicate the transportation of products or goods, and are almost exclusively used to refer to commercial items. However, cargo tends to refer to the actual content of what is being shipped, while freight describes the way that it is transported.
To help shippers better understand the industry and the shipping modes of transportation available to them, we’ll explain the different methods and unpack the most efficient way to transport goods—depending on the cost of shipping cargo, shipper needs, and other circumstances.
What different freight transport options are available to shippers?
In logistics agencies, the four major types or ‘modes’ of transport are road, rail, air, and sea. The preferred mode depends on what’s being shipped, the origin, and destination. In many cases shippers can combine different types of transport (‘intermodal’) to drive efficiency across their supply chain.
The decision over what mode of transport to use for cargo freight ultimately depends on a few core factors: cost, capacity, time, and frequency. But there are other matters shippers may have to consider.
Let’s break down when each freight transport method may be the most appropriate:
1. Road freight
Of all the freight options, the road haulage industry contributes the most to the UK economy. According to the Road Haulage Association, 89% of all freight in the UK is shipped via road transport, creating 1.9 million jobs and bringing £13.5 billion to the economy per year. Road freight is a popular transport choice worldwide, and it helps that it can be used in combination with other modes.
Benefits of road freight
● Simple tracking: GPS technology and TMSs (transport management systems) enable shippers to easily track cargo road transport journeys, helping them inform customers and plan around adverse weather conditions and other disruptions
● Accessibility: Most countries have a functioning road freight network, and can reach remote locations in a way other modes of transport simply cannot
● Speed: Although a freight plane is undeniably faster than a truck, road vehicles can be loaded and sent on their way quicker
● Cost: Compared to other freight modes, road haulage is more competitive, as they are cheaper to purchase and fuel, and do not require any other infrastructure e.g. a shipping port or rail station
● Fewer restrictions: drivers need to supply specific documents and certifications, but road freight is less regulated than air or sea
Limitations of road freight
● Restrictions: While there are fewer regulations on what you can ship via road freight, traffic conditions can cause delays and significant challenges for cargo drivers
● Risks: Of all the modes of transport, road freight has the highest risk of accidents
● Efficiencies: Road freight is excellent for short to medium-length journeys, but it is less suitable for long distances compared to rail or sea, particularly for international shipments
● Capacity: Even with full truckload (FTL) capacity, the largest articulated heavy goods vehicles carry up to 44 tonnes, and larger shippers may have consignments volumes in excess of this
2. Rail freight
Trains have long been a crucial element in freight networks, and the railway system in the UK is the oldest in the world. Rail cargo transport adds £2.45 billion to the economy each year, and it’s been reported that every freight train removes around 76 lorries from Britain’s roads.
Benefits of rail freight
● Greater capacity: Freight trains can move as much as 600 tons per journey, compared to trucks’ 33.6 ton capacity. This makes long journeys more economical
● Reduced risk of delays: Fixed rail schedules and predefined routes make train journeys less susceptible to disruption
● Safety: Trains are over 20 times safer than travelling by car
● Environmental impact: Rail transport produces emission reductions of up to 75% compared to road vehicles per tonne of goods transported
Limitations of rail freight
● Inflexibility: Since rail freight relies on predefined routes and specific lines and terminals, direct delivery is restricted
● Cost: Using railway tracks tends to incur higher charges than roads, driving up rail freight rates
● Limited infrastructure: Train networks support a more limited amount of freight vehicles compared to roads
3. Sea freight
90% of the world’s goods are transported by sea through packing shipping containers with cargo which is then loaded onto ships. These can carry thousands of containers, and are a tried and tested way to move high volumes of goods over long distances.
Benefits of sea freight
● Cost-effective: Sea cargo transport is generally more cost-effective than rail for large volumes
● Carbon-efficiency: Ocean vessels consume less fuel per unit of cargo when compared to road transportation
Limitations of sea freight
● Time-consuming: Ocean freight can take weeks, even months, to reach its destination
● Viability: The price of shipping small products via sea vessels is unsustainable
Which transport option should I choose?
Having now examined the pros and cons of each mode, here are some factors to consider when picking your cargo transport solution:
● Distance: Are you shipping long-haul or short-haul?
● Speed: Which cargo transport mode aligns with your desired delivery time?
● Budget: What are your budget constraints?
In general, road transport is best-suited for long-haul shipments (particularly for cargo shipped in bulk), but the customer does not get the same door-to-door experience as with road transport. International distances are usually best covered by sea transport, although these have longer transit times.
Should I use intermodal shipping?
In truth, shippers don’t always have to choose between each transport method. The drive for efficiency and sustainability has led to the growth of intermodal transport, where rail and road, road and ocean, and other combinations are used to support long-distance journeys. Each mode of transport tackles different legs of the journey (aka the first, middle, and last miles).
Here are some of the reasons shippers may consider intermodal for their long-distance, high-volume journeys:
1. Sustainability: Combining rail and truck transport enables shorter journeys with more fuel-efficient vehicles
2. Capacity: When shipments are oversized, intermodal containers and special equipment lets shippers move larger consignments
3. Cost: Integrating different modes of transport for one journey brings opportunities to optimise costs, such as using one container for cargo throughout
4. Security: Intermodal shipments are generally stationary for a shorter amount of time, leaving them less vulnerable to theft. Intermodal containers are also difficult to access on trains and are monitored throughout the journey
Amazon Freight’s customer service team is available to help you make the right decision for your business. Our intermodal transportation services and extensive network of carriers and partners can harness road, rail, and sea freight and get your cargo delivered safely and on time. We do not currently air transport cargo at this time.
You can create a free shipper account today and receive a quote. Alternatively, you can send us an email at freight-uk-interest@amazon.com with your contact information and volume details, along with any questions you might have. Our Account Management team will reach out to you from there.
You can also explore our other resources and insights on freight in our newsroom.
