It’s easy for first time shippers to hear common freight myths and assume they’re true. Some of these myths originate from outdated practices, others from half truth “Chinese whispers” and the rest well, we think they come from peoples’ wishful thinking. So we’re here to try and debunk the most common domestic freight myths, and to give a reality check on some of the more absurd ones so shippers can make the best decision for their business based on truths instead of tales. So, let’s get straight into it.

1. Myth #1 The Cheapest Quote Is The Best Deal 💰

It can be extremely tempting to go ahead and use the carrier that provides you with the cheapest quote to move your load. Those savings can look very enticing. However, just because the rate looks cheaper on paper at a first glance, this does not actually mean you’re getting the best value and the level of service you receive could be compromised. With the cheapest quotes, you’ll often find hidden charges along the way, meaning you could end up paying out more than you originally thought once the job is done. This causes difficulties in the long term too, accurately budgeting for jobs can become very difficult, impossible even.

Another thing to consider is the level of service you’d expect from the cheapest vendor too. It’s not always the case because some very good, reputable businesses do try and offer competitive rates. However, it’s generally thought that the cheapest carriers don’t always provide the best service and may cut corners so that they can maintain profitability while offering such low rates. This can severely impact your reputation, cripple you financially if you encounter delays, damages or lost freight, and could lead to your business losing valuable customers, which could far outweigh a small saving on transportation costs.

So no, the cheapest quote does not always work out as the best option for your business. This freight myth has been debunked.

2. Myth #2 All Carriers & Brokers Are The Same 🤷‍♀️

This is a myth that is widely believed and it’s that all carriers and brokers are the same and all offer the same services. Of course you have companies that do offer similar services, but each company has different capabilities, whether it’s geographical cover, service levels, equipment restrictions, etc. Therefore, it’s common for a carrier or broker to pick a niche that they excel and specialize in often particular cargo, industries, services or transportation mode. This is what sets them all apart and makes them different.

For example, we offer a ton of services that others do, but where we really come into our own is by specializing in heavy haul, specialized, critical, urgent and emergency shipments that others would not be able to deliver. Shopping around to find a specialist in your particular arena who can align with your needs is crucial when finding a freight partner. If not, you could end up with a generalist shipper and increase your risk of freight damages, delays, or regulatory headaches.

Again, not all brokers and carriers are the same. Each have their unique selling points and offer not only different services, but different levels of service. Once again, another freight myth that has been debunked.

3. Myth #3 Insurance Will Cover Everything 📃

I’ve got insurance, so I’m protected right? This is a misconception for most insured goods in life. Most people think as long as they have insurance that they’ve got full cover and protection should things go South. But, as I’m sure many of us will be aware of, there’s a lot of clauses and small print in insurance policies. In fact, we’ve written another blog all about insurances and liability when shipping freight and levels of cover and if you go ahead and read that then you will know that sadly insurance does not cover everything. Here’s a link to that blog: Liability in Oversize and High-Value Freight.

But in short, most carriers’ insurance covers cents on the pound of freight, meaning if your freight is high-value i.e. around $500,000 and your carriers liability limit covers $0.50 per pound you could be out of pocket by multiple, even hundreds of thousands of dollars. Additional cover is always recommended especially for high-value freight to minimize losses. But also being aware of liability is super important and knowing at each stage of the shipping process who is responsible for the freight,  is important because depending on what stage damage is sustained, will determine if and what insurance cover there is. Again you can read more about this in the blog linked in the paragraph above ⬆️.

Once again, this freight myth has been debunked. Sure, we always recommend insurance and having cover is super important, but be prepared that it might not cover you entirely.

4. Myth #4 Delivery Time Is Guaranteed ⏰

Once a load is booked and a time and date is set, if you’re using a general shipping method be aware that this is only an estimated arrival time. Carriers and brokers can only ever give ETA’s not guarantees. Although carriers do what they can to meet these ETA’s, timeframes can be affected by a ton of different factors outside of the carriers control.

Bad traffic congestion, severe weather conditions, capacity constraints during peak seasons are not all but some factors that cause bottlenecks in the logistics realm leading to delays of your shipments. Even when you book a dedicated, urgent service, yes these are the fastest ways to ship because your freight takes a direct route making it quicker, but the above complications can still effect your delivery times. The only way to truly combat this is to build extra time into your shipping schedules when you can.

Another freight myth debunked. Just because it’s booked, this does not mean that the delivery time is a set in stone delivery window.

5. Myth #5 Freight Class Doesn’t Matter 🙅‍♀️

Classifying your freight correctly is super important. Freight classification determines a few things throughout the shipping process including, pricing, how the freight is stored and how your freight is handled and transported. Misclassification of freight can lead to problems like, extra expenses, less efficiency throughout the shipping process and if a shipment was purposefully misclassified to avoid certain expenses, this is actually illegal and can open up a can of worms.

How do people commonly misclassify their freight?

• Stating wrong densities
• Incorrect dimensions and weight
• International freight – Usings wrong HTS codes
• Deliberate misclassification to avoid duties, customs and tariffs

So, as far as freight classification not mattering much? It absolutely does matter and will make a big difference to how smoothly your shipment moves and total costs. Once again, another freight myth has been debunked.

6. Myth #6 Claims Are Always A Nightmare 😓

Now, don’t hear us wrong, a lot of the time claims are a real nightmare. But, depending on the carrier or broker you partner with they could be handled on your behalf and you wouldn’t have to worry about claims paperwork again. Perhaps this myth dates back a few years before technology enabled us to have greater communication and streamlined the claims process through digitalised documentation.

As long as you keep all documents relating to the movement of your goods safe, i.e. BOL, receipt of delivery, proof of damage pictures, proof of losses, proof of value of the shipment and you act on damage as quickly as possible by reporting it to your insurance efficiently then you can get ahead of nightmares during the claims process.

The statement “claims are a nightmare” can be true at times, definitely there’s no argument there. But, it’s not always the case, there are practices that you and your freight partner can put in place to make them less of a headache.

7. Myth #7 Once It’s On The Truck, It’s Out Of My Hands 🚚

This one ties in with myth #3 and relates to liability. Now, this one is technically true, once a shipment is loaded the shipper is no longer liable for it, as long as there was no damages sustained before loading. However, it might not be fully out of your hands, should things go wrong you could still be responsible for filing a claim. It all boils down to whether bill of sales states “FOB Origin” or “FOB Destination” Origin removes liability from the shipper at the point of origin, and puts it on the receiver, meaning any issues that arise during shipping need following up by the consignee. Whereas FOB destination means the shipper has ownership of the freight up until the point of delivery, meaning the shipper is responsible for filing any claims if the freight is damaged, delayed or lost during transit.

So, yes technically you’re no longer responsible for the freight once it’s loaded (as long as you can prove the freight was in perfect condition before and during loading) but as the shipper you could still be accountable for filing claims. Again, this freight myth has been debunked, to an extent.

8. Myth #8 Bigger Carriers Are Better Than Smaller Carriers 🚚 🚛

It’s impossible to say whether larger or smaller freight partners are inherently better. It completely depends on your shipping needs such as volume, cost and type of service needed. While larger carriers may have a more extensive network to handle capacity and might offer a wider range of services, they might then sacrifice personal service. Whereas, most smaller carriers lean heavily into their USP being personalized service, attention to detail, tailored solutions and flexibility. Here’s some general conceptions of each:

Advantages of Larger Carriers

• Higher volume capacity
• Larger, more extensive network
• Access to more resources
• More service offerings

Advantages of Smaller Carriers

• Personalized service
• Tailored solutions
• More accountability
• More flexibility

Some might actually consider these misconceptions, but they’re just general assumptions. Making this another of the freight myths that has been debunked, both large scale and smaller scale carriers have their place in the freight world and are great for different reasons and needs.

9. Myth #9 Brokers Are Middleman And Only Add To Costs 💸

This is in fact incorrect, when you utilize a great broker you can add value not just cost. Brokers can be a lifesaving lifeline when capacity is tight, or you need to ship something outside of your usual lane. While working with a broker does cost money, they can save you quite a few dollars in the long run. They have access to tons of vetted carriers, so they can leverage market rates and find you the best deal (not necessarily the cheapest) with a reputable carrier.

We could shout from the rooftops about all of the great things a good broker can do for your business, like negotiating the best rates, streamlining co-ordination, expertise in your arena, simplifying paperwork, handling claims, you have a single point of contact, pre-vetting carriers so this is another myth that has also been debunked.

10. Myth #10 Freight Is Boring 😑

This is our personal favorite. On surface level, freight may seem incredibly boring, and more of a commodity. But, when you dig deeper, you realize that the freight world really touches everything. From your morning coffee, to turbines powering your city. The US economy and daily life would collapse quickly without domestic shipping trucks on our roads. It’s difficult to say how long we could survive without it, but considering trucking is responsible for delivering 70% of the US economy’s goods, we would guess it’d take a couple of days for the nation to see an impact.

Day to day, sure freight might be considered boring by some but to us it’s our daily bread and it’s what keeps the world moving. So it’s safe to say that this is another one of the freight myths that has well and truly been debunked.

Freight Myths Debunked 👏

We’ve busted some of the biggest freight myths and hopefully we’ve helped to save you from future headaches. There are enough challenges in the freight world without freight myths being thrown around. When you stick to the facts you can make better choices for your shipments and make life a whole lot easier.

If you’re ready to cut through the noise and ship with confidence, we’re always here to help. Contact us on: 888-SHIP-911 or through the link below ⬇️.

Need help with any of your specialized oversize and high-value domestic shipments?

Today can be the day you stop struggling with your logistics problems and debunk all freight myths.

At PEI we’re experts in dealing with specialized freight and can handle yours with any custom requirements.