Freight interline system
Encyclopedia
The freight interline system is a system of relations between trucking companies
, rail
, and airline
networks. Interline freight is cargo that moves between different transportation companies on its journey from origin to consignee
. An interline exchange is a contractual transfer of goods from one company to another.
A shipment may be prepaid or collect. If it is collect, then each carrier that ships the freight assumes responsibility for the cargo, adds its charges to the customer's bill, advances money to the previous carrier, transports the freight, and delivers it to the next carrier. The final carrier, the company which delivers the freight to its final destination, is responsible for collecting the money from the consignee before delivery.
A prepaid situation would be similar with the exception that each carrier would each take out its own portion of the freight rate as it handles the freight. Also, the final carrier would not have to collect any monies, but would still receive its own portion.
In a sequence of carriers transporting a particular cargo, each company is called an intermodal company. Often each company has discretion about when to interline the freight to another company. During an interline shipment there are intermediate entities assisting in the coordination of the transport, including customs brokers and logistics firms
. Sometimes a freight forwarder
will come between two carriers to act as an agent. Also, the freight will go through clearances and currency exchanges
.
A long interline system might include many companies. For example, a small air carrier might assume responsibility for the freight from the customer, then transfer it to a rail company, which puts it on a truck to an international airport, where a major air carrier might fly the freight overseas. At another international airport the freight may be transferred to another rail company, which transports the cargo to a hub near the consignee. A trucking company then might collect the freight and deliver it directly to the consignee.
Semi-trailer
A semi-trailer is a trailer without a front axle. A large proportion of its weight is supported by a road tractor, a detachable front axle assembly known as a dolly, or the tail of another trailer...
, rail
Freight train
A freight train or goods train is a group of freight cars or goods wagons hauled by one or more locomotives on a railway, ultimately transporting cargo between two points as part of the logistics chain...
, and airline
Cargo airline
Cargo airlines are airlines dedicated to the transport of cargo. Some cargo airlines are divisions or subsidiaries of larger passenger airlines.-Logistics:...
networks. Interline freight is cargo that moves between different transportation companies on its journey from origin to consignee
Consignee
In a contract of carriage, the consignee is the person to whom the shipment is to be delivered to whether by land, sea or air.-A brief statement of law:...
. An interline exchange is a contractual transfer of goods from one company to another.
A shipment may be prepaid or collect. If it is collect, then each carrier that ships the freight assumes responsibility for the cargo, adds its charges to the customer's bill, advances money to the previous carrier, transports the freight, and delivers it to the next carrier. The final carrier, the company which delivers the freight to its final destination, is responsible for collecting the money from the consignee before delivery.
A prepaid situation would be similar with the exception that each carrier would each take out its own portion of the freight rate as it handles the freight. Also, the final carrier would not have to collect any monies, but would still receive its own portion.
In a sequence of carriers transporting a particular cargo, each company is called an intermodal company. Often each company has discretion about when to interline the freight to another company. During an interline shipment there are intermediate entities assisting in the coordination of the transport, including customs brokers and logistics firms
Third-party logistics provider
A third-party logistics provider is a firm that provides service to its customers of outsourced logistics services for part, or all of their supply chain management functions....
. Sometimes a freight forwarder
Freight forwarder
A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or other companies and may also act as a carrier...
will come between two carriers to act as an agent. Also, the freight will go through clearances and currency exchanges
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
.
A long interline system might include many companies. For example, a small air carrier might assume responsibility for the freight from the customer, then transfer it to a rail company, which puts it on a truck to an international airport, where a major air carrier might fly the freight overseas. At another international airport the freight may be transferred to another rail company, which transports the cargo to a hub near the consignee. A trucking company then might collect the freight and deliver it directly to the consignee.