What is parcel shipping?
Package shipping is the shipment of boxed items weighing 70-150 pounds or less, depending on the carrier. These are smaller packages that can be easily moved by a person without assistance.
When should parcel shipping be used?
For smaller loads, businesses will want to consider parcel rather than LTL shipping. Packages are a more flexible and generally economical option for people who ship several small packages at a time.
What is the package shipping fee based on?
Carriers calculate package rates by looking at three items:
- Service Level
- Area
- Weight
In terms of service level, the carrier considers whether the shipper requires ground or air service. The origin and destination postal codes of the shipment come into play under this zone. The actual or dimensional weight of the package will also affect shipping rates.
Pros and Cons
There are many benefits to package shipping, including the flexibility to deliver your shipment anytime during business hours, fast overnight shipping, residential delivery, and increased tracking capabilities through multiple transfer points.
However, these transfer points do increase the risk of cargo damage, delays and loss. Unlike LTL shipments, where goods are palletized and securely organized on trucks, packages are placed loosely and are more likely to be damaged or lost. Properly packaging and labelling your items is critical.