The importance of cargo shipping and what ‘shipped as cargo’ really means

When many manufacturers and e-commerce companies think of shipping, they often imagine the last mile of delivery, where individual packages travel directly to end consumers. This is the world of parcel shipping, where goods are sent one by one to their final destination.

But there is also the middle mile to consider. Before parcels are sent from the distribution centre, they must first be transported there themselves. Enter cargo shipping: the process of transporting products in bulk—on pallets, in lorry loads, or within shipping containers—across logistics networks.

Here, we’ll explore what shipped as cargo means, along with other key logistics terms, so you can make logistics decisions with confidence.

When goods are ‘shipped as cargo’, they are moved in larger quantities using a network that covers road, rail, air, and sea. This network is known as the ‘middle mile’: the journey that connects suppliers, manufacturers, and retailers before goods reach the end customer.

Cargo is different from parcels in both its scale and destination. Parcels are smaller, individual items delivered directly to consumers. On the other hand, cargo typically involves larger, heavier loads bound for businesses like retailers, fulfilment centres, or manufacturers.

This distinction matters. Moving cargo requires bigger vehicles, containers, and more robust processes. With cargo, activities like tracking and paperwork are the key to a successful shipment. Understanding these differences will help you choose the best cargo solution for your business and ensure your supply chain runs smoothly.

Cargo shipping relies on four primary modes of transport: road, rail, air, and sea. Each mode brings its own strengths, and the best choice often depends on your shipment’s size, urgency, and destination. In practice, many supply chains use a mix, known as multimodal transport, to balance both speed and cost.

Road freight
Road transport is the backbone of UK and cross-border logistics. It offers door-to-door service, flexibility, and wide geographic coverage. Road freight is ideal for both full truckload (FTL) and less than truckload (LTL) shipments, and is crucial for the final leg of most multimodal journeys.

Rail freight
Rail is a strong choice for moving large volumes overland and can deliver significant cost savings on bulk or heavy shipments. It’s most efficient over set routes and longer distances, but usually needs to be paired with road transport for pick-up and last-mile delivery.

Air freight
Air is the fastest cargo option, reserved for urgent or high-value shipments. Although air freight comes at a premium, it delivers unmatched speed for time-sensitive deliveries.

Sea freight
Sea offers the highest capacity and the lowest per-unit cost for long-distance, high-volume shipments. While sea freight is slower, it’s indispensable for global trade.

Navigating cargo shipping can be complex, especially with industry-specific terminology. Here are some essential terms demystified. For a deeper dive into common freight logistics language, see our freight dictionary.

Full container load (FCL)
FCL refers to shipments that fill an entire container, typically twenty or forty feet in length. It is best suited for large consignments from a single shipper, offering cost efficiency, security, and faster transit times as the container is not shared with other cargo.

Less than container load (LCL)
LCL is used when a shipment does not fill a whole container. Multiple shippers’ goods are consolidated into one container, making it a cost-effective solution for smaller volumes. LCL helps businesses avoid paying for unused space and provides flexibility for regular, smaller shipments.

Intermodal transport
Freight transported in a container but using different methods (modes), like road, rail, air, and sea. When changing between modes, the freight itself remains untouched.

Common carrier
A common carrier is a transport provider that offers freight services under regulatory oversight. They are legally required to accept all suitable cargo and operate on published schedules and rates, ensuring fair and reliable access for shippers.

Charter party
A charter party is a contract between a shipowner and a charterer for the hire of an entire vessel or a significant part of it. Commonly used for bulk or break-bulk cargo, it sets out the terms, duration, and freight rates for the shipment.

House bill of lading (HBL)
HBL is a document issued by a freight forwarder to the shipper, serving as a receipt for goods and a contract of carriage. It details the shipment’s contents and destination and is essential for customs clearance and cargo tracking.

Cost, insurance, and freight (CIF)
CIF is a widely used term that defines the responsibilities of the seller and buyer. Under CIF, the seller covers the cost, insurance, and freight to the destination port, while the buyer assumes risk once the goods are loaded for transit.

Twenty-foot equivalent unit (TEU)
A TEU is a standard measurement in container shipping, representing the capacity of a twenty-foot-long container. It is used globally to describe vessel and terminal capacity, as well as shipment size.

Cargo shipping sits at the heart of both domestic and international trade, connecting businesses to the goods they need to operate. Without strong cargo networks, retailers, manufacturers, and distributors would struggle to keep up with demand and deliver for their customers.

Here in the UK, cargo shipping links up the supply chain nationwide. It’s what keeps shelves stocked and orders arriving on time. On the global stage, cargo shipping is what enables businesses to source materials and products from anywhere in the world. It’s crucial for everything from just-in-time manufacturing to cross-border ecommerce.

Amazon Freight brings together advanced technology and Amazon’s powerful logistics network to move your freight shipments simply and reliably.

Our platform makes it easy to book LTL or FTL shipments for both domestic and international routes. Pricing is clear and upfront, and our Account Managers are available around the clock to support your needs.

With Amazon Freight, you get dependable, year-round performance from a network built to keep your business moving, no matter the scale or complexity.

Take advantage of Amazon Freight’s global freight network, advanced logistics technology, and competitive pricing.

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