Freight shipping is a vital service for businesses involved in transporting goods, from small shipments to large-scale logistics. However, these services can often become costly, with expenses quickly adding up, particularly as fuel costs fluctuate and demand increases. Fortunately, there are several effective strategies you can implement to help lower these costs without compromising the speed or quality of delivery. Here’s a closer look at five practical ways to save on freight shipping costs.
1. Optimize Packaging to Maximize Space
One of the easiest and often most impactful ways to cut down on freight costs is by optimizing the packaging of your shipments. Freight carriers typically calculate costs based on the weight, dimensions, and density of each package. By making small adjustments to how your goods are packed, you can reduce both the weight and volume, saving you money.
- Choose the Right Sized Boxes: Avoid the common pitfall of using boxes that are too large for the items being shipped. Oversized boxes can result in unnecessary volumetric charges as carriers charge for the space taken up, not just the weight. Selecting a box that snugly fits your items not only minimizes shipping costs but also reduces the need for excessive filler materials.
- Use Lightweight Packing Materials: To reduce the overall weight of each shipment, consider switching to lightweight but durable packing materials, such as foam peanuts, bubble wrap, or air pillows. These provide adequate protection without adding unnecessary weight, helping you save on weight-based shipping charges.
- Consolidate Shipments: Where possible, consolidate multiple shipments into one. For example, if you regularly ship multiple packages to the same location, combining them into a single shipment reduces handling and often comes with discounted rates from carriers. Consolidation can also help with organization, reducing the chance of misplaced or damaged packages.
2. Understand Freight Classes and Dimensional Pricing
Navigating freight classes and understanding dimensional pricing is essential to saving on shipping costs. Freight class and dimensional weight are two key factors that carriers use to calculate charges, and knowing how they apply to your shipments can help you avoid overpaying.
- Learn About Freight Classes: Freight classes are part of a standardized pricing system used to categorize shipments based on factors like density, stowability, and handling. Shipping costs are often higher for freight that’s classified as fragile, heavy, or difficult to handle. By understanding which class your shipments fall into, you can avoid any unnecessary upcharges.
- Re-evaluate Your Freight Class Regularly: If you ship items in bulk or frequently send similar shipments, periodically check to see if your shipments qualify for a different class. Providing proof that your items are easier to handle or stow may result in a lower freight class, saving you money in the long run.
- Optimize Density to Lower Dimensional Charges: Dimensional pricing is based on the space your package occupies rather than weight alone. Increasing the density of your shipments—either by compressing items where possible or reducing extra packing—can lower these dimensional charges. Be strategic about packing so that you are paying for the actual contents, not empty space.
3. Use a Freight Broker or Shipping Partner
Freight brokers and third-party logistics (3PL) providers can be invaluable for businesses looking to cut down on shipping costs. By working with brokers, you gain access to a network of carriers and optimized shipping rates, which would be hard to negotiate as an individual customer.
- Leverage Bulk Buying Power: Freight brokers often have long-standing relationships with carriers, allowing them to negotiate bulk rates. This means that even if your business does not ship large volumes on its own, working with a broker can give you access to discounted rates.
- Route Optimization and Shipping Efficiency: Many brokers use technology that optimizes shipping routes, ensuring your goods take the most cost-effective path. This reduces costs and can result in shorter transit times, helping your goods reach their destination faster.
- Value-Added Services: In addition to cost savings, many brokers offer value-added services, such as real-time tracking, claims management, and customer service support. These extras provide peace of mind and often streamline the shipping process, allowing you to focus on other aspects of your business.
4. Plan Shipments in Advance
Time is a crucial factor when it comes to freight shipping costs. When shipments are planned in advance, businesses can take advantage of more economical shipping methods rather than paying a premium for expedited services. Careful planning not only saves money but also helps improve the reliability of your logistics.
- Schedule Regular Shipments: Businesses that can schedule routine shipments with consistent pickup times may qualify for loyalty discounts from certain carriers. Regular scheduling allows carriers to better allocate their resources and reduce costs, which they may pass on to you in the form of discounts.
- Avoid Peak Shipping Periods: Certain times of the year, like the holiday season, see a significant increase in freight costs due to high demand. Whenever possible, try to schedule shipments during off-peak periods, as carriers often raise their rates to manage demand during these peak times.
- Explore Flexible Transit Times: Some shipments do not require immediate delivery, and if your business can be flexible with delivery times, you may save significantly. Standard shipping options are usually less costly than expedited services, so if you have more leeway in terms of timing, consider using economy shipping options.
5. Choose the Right Shipping Modes and Services
The mode of transportation you choose for shipping, such as less-than-truckload (LTL), full truckload (FTL), or intermodal, can make a substantial difference in cost. By selecting the mode that best suits your shipping needs, you can control expenses more effectively.
- Use Less-Than-Truckload (LTL) Shipping for Smaller Shipments: If you don’t have enough goods to fill an entire truck, LTL shipping is typically more affordable than full truckload (FTL) options. In LTL shipping, your goods share space with other shipments, and you only pay for the portion of the truck you use. This option is ideal for businesses that ship smaller quantities or have irregular shipping schedules.
- Evaluate Shipping Speeds: Often, the choice between faster or slower shipping options comes down to cost. Expedited shipping services tend to be more expensive, so if your timelines are flexible, consider choosing standard or economy services. Slower shipping options can offer significant savings without compromising reliability.
- Consider Intermodal Shipping for Long Distances: Intermodal shipping combines various modes, typically involving rail and truck, and is well-suited for cross-country shipments. Although slightly slower than trucking, intermodal options are generally more economical, especially for long distances. This option can also be a more sustainable choice, as rail transport has a smaller carbon footprint compared to trucking.
Saving on Freight Shipping Costs
Reducing freight shipping costs requires a mix of strategy, planning, and partnership. By optimizing packaging, understanding the role of freight classes and dimensional pricing, working with a freight broker, planning shipments in advance, and selecting the most suitable shipping modes, you can ensure that your business isn’t overspending on shipping. These strategies can help you maintain or even improve your service quality while keeping shipping expenses under control.
Effective freight shipping doesn’t just save you money—it also helps you stay competitive in today’s fast-paced market. With these tactics in place, your business will be better positioned to navigate fluctuations in shipping costs and to continue providing value to your customers.
