The freight interline system is a system of relations between
trucking companies,
rail
Rail or rails may refer to:
Rail transport
*Rail transport and related matters
*Rail (rail transport) or railway lines, the running surface of a railway
Arts and media Film
* ''Rails'' (film), a 1929 Italian film by Mario Camerini
* ''Rail'' ( ...
, and
airline
An airline is a company that provides air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or alliances with other airlines for codeshare agreements, in wh ...
networks. Interline freight is cargo that moves between different transportation companies on its journey from origin to
consignee
{{Admiralty law
In a contract of carriage, the consignee is the entity who is financially responsible (the buyer) for the receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.
If a sender dispatches an it ...
. 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
Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs ...
brokers and
logistics firms. Sometimes a
freight forwarder
A freight forwarder, or forwarding agent, is a person or company who, for a fee organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. will come between two carriers to act as an agent. Also, the freight will go through clearances and
currency exchanges
In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of ...
.
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.
References
{{Reflist
External links
Canada Revenue Agency's sales tax information for freight carriers
Freight transport