How to Choose the Best Shipping Mode for Your Business

Bekah Tatem

By Bekah Tatem, Sr. Content Writer

Last Updated July 28, 2025

5 min read

In this article, learn about: 

  • The pros and cons of different shipping methods 

  • Questions to consider when choosing your shipping method 

Choosing your shipping strategy can make or break the profitability of your business. For example, if you opt for truck freight shipping but are constantly delayed and missing delivery windows, this can lead to costly fines. On the other hand, if you ship via air, you may guarantee quick deliveries but at the expense of your profit margins.  
 
That’s why it’s essential to understand the strengths and trade-offs of each transportation mode. In this article, we’ll break down the pros and cons of shipping via truck freight, rail, and air, so you have the information you need to make the best decision for your business. 

An Overview of Shipping Modes  

Choosing your shipment method depends on many factors like: 

  • What you're shipping 

  • How quickly it needs to arrive 

  • How much it weighs 

  • Where it’s going 

  • What your budget is 

To help answer those questions, it’s helpful to understand the major transportation methods available to you, and when each one makes the most sense.  

Parcel 

Parcel shipping refers to packages sent via a shipping service, like UPS, Fedex, or USPS. These packages are typically smaller and lighter.  

Common Uses: 

  • Shipping small quantities 

  • Shipping samples to buyers  

  • eCommerce fulfillment 

  • Direct-to-consumer (DTC) fulfillment 

Pros and Cons of Parcel Shipments 

Pros 

Cons 

  • Easy to track, as shipping services provide tracking information 

  • Typically, automatically insured up to a certain amount (e.g., $100 for USPS packages) 

  • No freight class since shipments are below a certain weight (typically 150 lbs.) 

  • Flexible shipping options and wide delivery range (business, residential, etc.) 

  • Often has higher cost per unit if shipping multiple things 

  • Weight and size restrictions 

  • Not ideal for shipping in bulk 

 

Truck Freight 

Truck freight is one of the most common choices in the retail industry. It involves the shipment of goods by road, typically using semi-trailers or box trucks. According to the Federal Railroad Administration, truck freight makes up nearly 40% of freight movement in the United States.  

This mode is an ideal choice for shipping large quantities of goods between businesses, such as from suppliers to retail distribution centers or warehouses. 

Common Uses: 

  • Delivery of bulk goods (e.g., from a supplier to a distribution center) 

  • Delivery of items that require refrigeration or specific temperatures 

  • Replenishment of store inventory to a retailer 

Pros and Cons of Truck Freight 

Pros 

Cons 

  • Can accommodate time-sensitive deliveries 

  • Convenience of door-to-door pick-up and delivery 

  • Tends to be more affordable than other options 

  • Offers flexible options like FTL and LTL 

  • Susceptible to delays from weather, traffic, and other unexpected issues 

  • Carrier reliability can vary  

  • Long-distance routes can become expensive 

Related Reading: Pros and Cons of LTL and FTL Shipping 

Rail Freight 

Rail freight refers to shipments that are moved via the rail system. According to the Federal Railroad Administration, nearly 28% of freight movement (measured by ton miles) uses the rail system.  

Common Uses: 

  • Long-distance delivery 

  • Shipment of bulk raw materials 

  • Ideal for moving heavy freight 

Pros and Cons of Rail Freight 

Pros 

Cons 

  • Cheaper option for heavy, long-distance shipments 

  • More environmentally friendly than truck freight 

  • Often not subject to delays from road congestion, accidents, or weather 

  • One of the slowest shipment modes 

  • Rail routes are fixed and less flexible than other modes of transport 

  • Often need truck transport for first-mile or last-mile delivery 

Air Freight 

Air freight refers to cargo shipments that take place via aircraft. Goods are transported through commercial or cargo-specific airlines. This is the least common way to transport goods in the United States, likely due to the significant cost associated with air transport. However, in certain instances, it can be a crucial method of transporting goods quickly.  

Common Uses: 

  • Highly time-sensitive transport (e.g., medical supplies) 

  • High value items (luxury items, electronics, high-demand products) 

  • Perishable goods (e.g., seafood, flowers, etc.) 

Pros and Cons of Air Freight 

Pros 

Cons 

  • Short transit time in comparison to the other transport options 

  • Can accommodate emergencies or last-minute replenishments 

  • Access to hard-to-reach locations 

  • Most expensive option 

  • High environmental impact 

  • More weight restrictions than freight traveling on land/water 

Ocean/Water Freight 

Ocean and water freight is a common method for transporting goods and raw materials, especially for international trade. The majority of US imports and exports move via ocean freight. In addition, river barges account for approximately 5% of domestic freight transportation.  

Common Uses: 

  • Moving heavy raw materials, like coal and crude oil 

  • Shipping goods internationally in containers  

  • Transporting agricultural products like grains 

Pros and Cons of Ocean/Water Freight 

Pros 

Cons 

  • Cost-effective option for bulk/long distance shipments 

  • Can handle large volumes of materials/goods 

  • Reduced carbon footprint in comparison to other methods 

  • Slow moving with more limited reach 

  • Limited reach inland 

  • Potential delays due to ports or customs 

Questions to Consider Before Choosing 

Once you understand all the options available to you, it’s helpful to narrow down your core shipment strategy by answering the following questions: 

Shipment Details 

  • The goods: Are the items perishable, time-sensitive, heavy, etc.?  

  • The weight/volume: Is your shipment lightweight, heavy, or have special palletization or accessorial requirements?  

  • The quantity: Are you shipping a small parcel, partial truckload, full truckload, or bulk materials? 

Delivery Requirements 

  • The destination: Are you shipping regionally, internationally, or to a hard-to-reach area? 

  • The timing: Do you need same-day or next-day delivery, do you have a specific delivery window, or can the goods travel over a longer period? 

  • The budget: What can you spend on transportation without compromising your margins? 

Regulations & Compliance 

  • Other parties involved: Are you shipping to retail partners with specific shipping requirements or expectations? 

  • Compliance requirements: Are there retailer routing guides, labeling standards, customs regulations, or other rules you must follow? 

Cost matters when choosing your shipment method, but it’s not the only consideration. It’s also about picking the option that aligns with your product, timeline, and customer expectations. Understanding the trade-offs between parcel, truck, rail, air, and water freight can help you build a better, more resilient supply chain.  

Related Content