Freight transport covers all the operations that move a product from point A to point B, whatever the mode used: truck, ship, plane, train or barge. It is the physical link of the supply chain, connecting suppliers, factories, warehouses and customers.
The term freight is also widely used. It refers both to the goods being transported and, more broadly, to the whole sector: hence expressions such as the freight market or the freight rate.
A shipment is domestic when it stays within a single country, and international when it crosses at least one border. In the latter case, rules, documents and sometimes players change: this is the whole challenge of international freight transport.
Behind every shipment, three flows are at work: the goods (physical flow), information (orders, prices, documents, tracking) and payment (financial flow).
Five modes share the freight transport market: road, ocean, air, rail and inland waterways. Each has its own sweet spot, and the right choice depends on distance, volume, urgency and the value of the goods.
Ocean freight carries about 80% of international trade by volume. In Europe, it accounts for 67% of tonne-kilometres, road for 26% and air for 0.2%. This unit takes the distance travelled into account, which explains the weight of ocean freight: looking at land modes only, road accounts for 78%.
These modes can also be combined: a shipment is multimodal when a single journey uses at least two modes, and intermodal when the loading unit (container, swap body) stays the same.
(Sources: UNCTAD, Review of Maritime Transport 2025 ; Eurostat, 2024 data.)
The most widely used mode in Europe and North America
Highly flexible: door-to-door delivery with no break in load
Suited to short and medium distances
Sensitive to fuel costs, social regulations and congestion
The dominant mode for international trade (about 80% of global volume)
Very high capacity (bulk carriers, container ships)
Low unit cost over long distances
Long lead times and dependence on ports and port infrastructure
The fastest mode of transport, suited to high-value, perishable or urgent goods
Marginal in volume (under 1% of international trade), but about 35% of its value
High cost and limited capacity
Significant carbon footprint
Suited to long land distances and large volumes
Growing rail corridors (notably Eurasia)
Less flexible than road, but lower CO₂ emissions
Growing as part of the energy transition
Used for large volumes on specific routes (Rhine, Rhône, Danube...)
Low cost and low carbon footprint
Geographically limited and sensitive to weather conditions
A shipment involves several players with distinct roles. On domestic flows, the shipper often buys directly from the carrier, with no intermediary.
Shipper: the company that owns the goods, expresses the transport need and pays for it
Carrier: the company that physically carries out the transport, from the independent truck driver to the shipping line
Freight forwarder: the intermediary that organizes transport on behalf of the shipper and subcontracts it to carriers
Customs broker / forwarding agent: the intermediary that handles customs and administrative formalities, mostly for international shipments
Three other roles complete the picture:
3PL (third-party logistics provider): manages transport and warehousing on behalf of the shipper
4PL (fourth-party logistics provider): runs the shipper's entire supply chain by coordinating several providers
Freight buyer: the person who quickly finds capacity when the framework contract is not enough (spot)
Whatever the mode, a shipment follows the same six steps:
Quotation: the shipper defines its needs (volumes, dates, constraints) and requests a price, through its contract rate card or a request for quotation (RFQ)
Booking: choice of carrier (contract or spot) and confirmation of the reservation
Loading: pick-up of the goods and issue of the transport document (the CMR for international road freight)
Transit: the journey itself, with real-time tracking and updates to the estimated time of arrival (ETA)
Delivery: unloading, inspection of the goods and signature of receipt (proof of delivery)
Invoicing: the agreed price, plus any surcharges (fuel, waiting time at the dock)
Any dispute (missing or damaged goods) must be recorded on the transport document immediately: without this mention, it is very hard to enforce.
Outside the European Union, customs declarations are required for export and import, often handled by a customs agent, along with a mandatory EORI number, and duties and taxes based on the HS code and origin: more paperwork, more costs and more waiting time at the border.
There is no such thing as a "fair" price for freight: the rate depends on the balance between supply and demand, and on the costs the carrier has to cover.
Four key points to find your way around:
Supply, demand and capacity: when demand exceeds available capacity, prices rise, and vice versa
Operating costs: fuel, labor, tolls, equipment depreciation, insurance
Distance: the basis of the calculation, but not proportional, as fixed costs weigh more on short distances
Flow imbalance: on a lane where the truck returns empty (backhaul), the outbound leg costs more, hence different prices between Paris-Madrid and Madrid-Paris
Seasonality: peak periods mean less capacity and higher prices (spring-summer for road, the pre-Christmas peak for all modes, Chinese New Year and Golden Week for ocean freight)
Vehicle and goods: refrigerated, dangerous goods (ADR) or out-of-gauge cargo require specific equipment or expertise
The spot rate is negotiated at the time of need: it reflects the state of the market at that moment, is more volatile and is often more expensive in periods of tension.
The contract rate is negotiated in advance, for a period usually between 6 and 12 months: more stable for the budget, it is renegotiated during tenders, often held annually. Many companies combine both: contracts for the base volume, spot for peaks in activity and urgent needs.
In France, road freight prices include a fuel surcharge indexed to the diesel index published monthly by the Comité National Routier. A price paid can therefore change from one month to the next with nothing else having changed.
Before comparing two prices, check that they are expressed in the same unit (€ per trip, € per pallet, $ per 40-foot container, $ per kg) and for the same flow direction.
The emissions of a shipment are calculated by multiplying three elements: distance (km), weight (tonnes) and an emission factor specific to each mode (g of CO2e per tonne-kilometre). The international reference is the ISO 14083 standard, implemented through the GLEC Framework.
The topic is now unavoidable for companies: in France, every carrier must inform its customer of the emissions of its service, and the CSRD directive requires large companies to report their emissions, including upstream and downstream transport.
Three levers can reduce them: modal shift (rail, inland waterways, combined transport), better vehicle load factors (less empty running) and alternative energies (biofuels, bio-CNG, electric trucks).
Ready to take better control of your transport?
Upply is the intelligent transport management platform. Shippers, carriers and consulting firms rely on Upply to:
Compare their road, ocean and air rates against real market prices, line by line, with Benchmark
Track freight indices and cost drivers in Upply Data Hub
Centralize their transport data with Dashboard to manage costs
