The type of delivery is a feature of carrier registration that makes the grouping of carriers that offer the same price. It works as a category that will be displayed in the cart, during the checkout.
Grouping by type
The shipping type will be used as an aggregator when more than one carrier offers the same type of delivery, that is, when different carriers have similar characteristics.
Example: The carriers CA Ground, FedEx Ground, and UK Ground perform the Regular type of delivery, while FedEx Overnight and Latam VTEX Sales App perform the Express type.
Displaying the carriers at checkout
On the cart area, the delivery options are separated by shipping type, not by carrier name. So, it is essential for these types to have friendly names, and for each carrier to be related to a different category, otherwise only the carrier with the shortest delivery time and the lowest value for that shipping type will be displayed.
The following picture shows how the shipping options would be displayed on the checkout according to the example mentioned before:

Notice that, even though five carriers are registered (in the Regular and Express categories), only two freight options are displayed to the customer. This is not because the other carriers do not fulfill the cart requirement, but because, within the same type of freight, only the carrier with the lowest price or the shortest delivery time will be displayed.