Tips for Saving Money on Freight Shipping
If you conduct a large amount of freight shipping, you might think there isn’t much you can do to reduce your shipping costs. Although shipping will indeed be a big part of your expenses, the good news is that there are a few great ways to reduce shipping expenses. This quick guide will provide easy ways to save on this important part of your budget.
Create Steady Lane Volume Contracts
Rather than constantly shopping around for different contractors in hopes of getting a better deal, it is often smarter to contract with one carrier. When a carrier can be assured they will get a steady flow of freight volume, they are often willing to work on providing the best possible price. This helps the carrier to run a more efficient operation, and you will benefit in the long run.
Another benefit is that carriers who feel they have loyal relationships with merchants will often focus on moving your freight first. This can be very important when capacity is tight.
Ship on Off-Peak Days
It pays to understand the patterns of shipping days. Many customers attempt to get their product into stores by Thursday on an average week. This means that Friday is considered an off-peak day in most industries. Mondays are also a low-volume day, as it is usually the day that carriers are looking for freight loads for the week.
This can vary some depending on the products of, course. Do some research to find out peak and off-peak days for your particular industry or product.
Improve Delivery Lead Times
When possible, bring some organization into the supply chain by giving carriers advanced notice concerning future loads. This allows the carriers to maximize their trucks, drivers, and warehouse space to better accommodate your needs. This small increase in efficiency helps everyone in the process, and you can often get discounted rates because you are making the carrier’s job easier.
When planning is left out of the equation, time is wasted, and time is money.
When products require airbags, strapping, blocking or bracing to ensure safe delivery (also called dunnage), it can add up to extra costs. Although you certainly want products to arrive safely and undamaged, there are certain things you can do on your end to ensure that carriers don’t feel the need to go overboard with more dunnage.
You can cut down on these expenses by always ensuring that items are packed in exactly the right-sized boxes. It also benefits hazmat shipping to ensure that materials are already boxed safely before arriving at the carrier.
Categorised in: Freight Shipping