9 Tips to Manage Freight Costs
Melton Logistics – 10/03/2024
The primary goal for any shipper is to ensure every load gets to its destination on-time and damage-free. However, saving money on transportation costs wherever you can is also important for your company’s bottom line. The cost of shipping your freight is a combination of several factors, such as freight type, time of year, mode of transport, and more; but that’s not to say reducing freight costs is an impossible task. Below are 9 tips you can utilize to ensure you’re getting the most out of your transportation budget.
Secure Contract Rates with Frequent Partners
The primary goal for any shipper is to ensure every load gets to its destination on-time and damage-free. However, saving money on transportation costs wherever you can is also important for your company’s bottom line. The cost of shipping your freight is a combination of several factors, such as freight type, time of year, mode of transport, and more; but that’s not to say reducing freight costs is an impossible task. Below are 9 tips you can utilize to ensure you’re getting the most out of your transportation budget.
Consolidate Your Shipments
If you’re paying for a trailer’s worth of space, make sure you’re packing your products to get the most bang for your buck. Make sure items are packed efficiently, evaluate your packaging and make sure no space is wasted, and have enough items ready to fill the trailer. This will greatly reduce fuel costs and reduce the number of shipments needed to transport all of your freight.
Avoid Rush Shipping if Possible
Rush shipping fees can add up quickly if you’re consistently needing expedited delivery. Whenever possible, arrange shipments far enough in advance where rush shipping won’t be required, even in the case of potential delays. Arranging flexible pickup dates with carriers may also reduce freight costs, as they can work the load into their schedules easier.
Consider Multiple Modes of Transportation
For longer shipments, utilizing multiple modes of transportation could prove more cost effective. Depending on the route, you could take advantage of rail, road, air, and ocean transportation on different legs of your freight’s journey. This could mean, for example, instead of shipping an international load via air, you could utilize ocean, rail, and LTL shipping to get to your destination. This may take more planning, but you may discover new places to cut costs as you go.
Know Your Route Plans
By planning your routes as efficiently as possible, you’ll be able to optimize your travel time and reduce the per-mile cost of shipping, as well as avoid any situations that would cause delays. This can include avoiding high-traffic areas at peak times, navigating around severe weather, or finding a detour around construction. Even if your freight travels the same routes frequently, keep an eye out on any new problems that could affect these routes and have backup plans ready.
Review Your Freight Bills
If you’ve received a bill for your shipment that’s higher than you expected, make sure to review and see where the extra costs are coming from. There may be accessorial charges from delivering after hours, fuel surcharges, international shipping fees, and more. While these fees are most likely legitimate, understanding why you were charged and learning to avoid unnecessary fees in the future is a great way to optimize your freight costs.
Ensure Your Freight is Properly Classified
If you’ve received a bill for your shipment that’s higher than you expected, make sure to review and see where the extra costs are coming from. There may be accessorial charges from delivering after hours, fuel surcharges, international shipping fees, and more. While these fees are most likely legitimate, understanding why you were charged and learning to avoid unnecessary fees in the future is a great way to optimize your freight costs.
Leverage Technology in Your Strategy
By conducting your logistics operations in a transportation management system (TMS), you’ll be able to see a complete overview of your business’ transportation efforts. TMSs can help you secure lower rates, view real-time updates on your freight, help optimize your shipment routes, and more. As technology continues to advance, many systems are now leveraging AI to better their systems and provide predictive analytics that can further improve decision making. Learn more about how AI is impacting the logistics industry in this article.
Work With a 3PL Like Melton Logistics
If you’re short on time or are overwhelmed with managing your business’ transportation strategy, connecting with a 3PL can be a great way to save both time and money. Experienced 3PLs like Melton Logistics know the ins and outs of arranging all types of shipments, and will be able to find places to cut freight costs while getting your freight delivered as efficiently as possible.
If you’re ready to streamline your logistics operations, Melton Logistics is here to help! Learn more about us and the logistics services we offer here, or contact us if you’re ready to connect.