Shipping Companies: A Clear Guide to How They Work

What are shipping companies?

Shipping companies move goods from one place to another, using ships, aircraft, trucks, rail, or a mix of these. They may own assets (carriers) or work through networks as freight forwarders or third-party logistics providers. Their goal is to get cargo from origin to destination safely, on time, and with clear visibility.

Who uses them?

Businesses of all sizes, e-commerce sellers, manufacturers, and retailers rely on shipping companies to move products and meet customer deadlines.

Core services

• Transportation of goods by sea, air, rail, or road
• Tracking updates and communication throughout the journey
• Packaging, labeling, and sometimes customs clearance or duties handling

Types of shipping services

Ocean freight (sea)

• FCL (full container load): you use an entire container for your shipment.
• LCL (less than container load): your goods share a container with others.

Air freight

Fastest option, usually more expensive, good for high-value or time-sensitive items.

Rail and road

Alternative for continental routes, often cost-effective for large volumes.

Multimodal and door-to-door

Combination of modes with pickup and final delivery included.

How to choose a shipping company

Think about coverage, reliability, tracking, price clarity, insurance, and customer support. Practical steps:

• Define your needs: origin/destination, dimensions, weight, required transit times.
• Request quotes and compare terms, including surcharges.
• Check references and read reviews.
• Confirm insurance options and claims process.
• Test with a small shipment before committing to a long-term contract.

What to check in a contract

• Transit times and service levels
• What is included in the price (fuel surcharges, documentation fees, customs handling)
• Insurance coverage limits and claims process
• Incoterms and responsibility for duties

Common terms to know

Incoterms and freight terms

• FCL vs LCL
• FOB, CIF, DAP, DDP
• ETA, ETD
• Bills of Lading (B/L)

Documentation you may encounter

• Commercial invoice, packing list, and bill of lading
• HS codes for customs classification

Getting started with your shipment

Prepare your goods with proper packaging and labeling. Gather necessary documents (invoices, packing lists, and any permits). Choose a service level, book the shipment, and share pickup instructions. Track the shipment and be ready to respond to any customs or import requirements.