5 Best Ways to Avoid Extra Freight Shipping Charges

5 Best Ways to Avoid Extra Freight Shipping Charges

Running a business involves costs. You have taxes, water, wages, electricity and other expenses to pay. Freight shipping costs are also part of your budget, and a growing company is likely to face rising fees.

To minimize the cost inflation, you may want to look for ways to cut down on expenses without affecting your company’s integrity. One of the steps to achieve this is by reducing your freight shipping rates using these tips:

1. Know the Transport Options Available to You

You may ship your goods by sea, land or air. Shipping via the sea is typically cheaper than air, particularly when handling international cargo. If you intend to ship local goods, you may want to opt for railroads because they are cheaper than trucks. To further, reduce costs and have better delivery times, try mixing the three transportation options.

2. Ship More, but Less Frequently

One way to help lower the freight costs is to encourage customers to purchase in bulk or place bigger orders. For instance, shipping 20 pallets per day is more efficient than say, two pallets every three days.

Give your customers incentives to buy in bulk so you can save on the overall costs and make your business more profitable. For example, you may offer free shipping on all orders above a specific threshold. The same applies if you’re distributing to retailers.

3. Ship Off-Peak

Try to consider shipping your freight on off-peak days, such as Fridays. Many customers like it when their products are available in their stores by Thursday, which helps them prepare for the weekend.

Well, this depends on the type of goods you’re shipping. For example, desktop laptops have a larger window than perishable items. Mondays are off-peak days too that you may want to consider. It could save you 10 percent compared to shipping on busy days.

4. Develop a Long-Standing Relationship with Carriers

Shopping around for the best deal seems to be what most people do these days. However, creating a long-term relationship with a carrier has more benefits.

Contracting steady volumes can help lower costs and build networks as well. When you’re loyal to a carrier, they’ll be loyal to you. When capacities tighten, your carrier may want to focus on shipping the cargo of those who have been them long enough and have reliable, or steady freight volumes.

 

5. Know if You Need Special Services

It’s essential that you know the special services you need and include them in the quote. These may include residential delivery, scheduled pickup time, scheduled delivery time, residential pickup and more.

Not knowing the special services you may need may give some carriers a reason to bill you at a rate you’ve no control over. Besides, find out the fees for the special services so you can get the best rate right from the start.

Final Thought

Shipping products shouldn’t be too costly. Strive to lower the costs so you can run a profitable business. Using the same shipping company and the best transport mode can make a huge difference in terms of cost.

Limco Logistics