This article tells about the definition of premium freight, things that make it a needed business practice, and informs you about the difference between freight and shipping.

Premium freight meaning

Premium freight is the additional charges paid to a transportation provider to expedite shipments to meet a required date. Often used as a partial measure of on-time shipment performance.

Things that make premium freight as needed business practice

  • Rapid product launches
  • Require to develop efficient global supply chains
  • Logistics challenges
  • Necessity to bring down warehousing costs
  • Helps the company to cut costs and complete the project on-time

Difference between freight and shipping

Generally, the meaning of freight and shipping is almost the same. Both freight and shipping are the transportation of products by air, land, or water. Then also small differences are there between them.

Basically, in freights, transportation of goods or products happens in bulk quantity. But in shipping transportation takes place in a smaller amount.

Freight can be for commercial purposes only. Whereas shipping can be for both commercial and non-commercial purposes.

Freight is cheaper to transport goods because it transports in bulk. But shipping is a little expensive.

Get more definitions about premium freight and other ERP related terms here.


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