7 Ways You Can Reduce Freight Costs

7 Ways You Can Reduce Freight Costs

Is there any possibility that you can reduce freight costs? If only we can include ‘free shipping’ to our cargo.

Unlikely though. By understanding how your cargo move along the supply chain you can find ways and maming adjustment necessary to save while being efficient, wherever possible.

Reduce freight costs

7 Ways You Can Reduce Freight Costs

Efficient Packaging

This is no brainer. Efficient packaging is the first point when you want to save and reduce freight costs as much as you can. Particularly as freight forwarders today consider dimensional weight, on top of the cargo’s true weight.

Keep in mind, efficient packaging means not going overboard with bubble wraps and packaging peanuts available.

By definition, a cube is most cost and space effective in shipping and transporting your cargo. Hence, aim for this shape as much as possible

Use Regional Carriers

Regional carriers typically offer lower price point compared to national one. Shop around and estimate the total cost for particular shipment to be sure.

Ask For a Carrier Discount

Discounts is always there if you ask, and it can be worthwhile in the long run. Large companies and frequent users might score a discount or two with their carrier, for a long term relationship.

Tip: create a rapport with your carrier as much as possible.

Choosing The Right Transportation Mode

Each type of route have their own features, pricing and fees, risks, as well as liabilities. Consider which route is the most efficient, time and money-wise.

Which mode of transportation is time and cost saving for your cargo?

Choose The Right Time To Ship

Unless your cargo contains perishable items, it’s best to consider shipping during off-peak season, where it’s typically cheaper. You can also consider a backhaul shipping, where carriers uses empty trucks heading back, to further reduce your expenses. Ask your carrier if there’s any for you to slot in.

Consolidate Your Freights

Using this tried-and-true method gives you a chance to save a considerable amount of costs, time, and handling cargo. Look for this type of shipment whenever possible.

Lobby Your Clients To Purchase Big Orders

While they may look for small shipments on regular basis, encourage them to purchase large orders for more savings in the long run. Win-win for both parties.

Conclusion

These steps are definitely benefical for any export/import company, especially for small business looking for a room to grow. By reducing freight costs, you can offer a more efficient shipping, while saving in the long run.

Reference:   1,2,3,4

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