Tips To Help You Save On Freight Shipping

Posted by on Jan 26, 2015 in Blog | 0 comments

If you work in an industry that deals heavily with shipping large packages that are not accepted by the traditional post office, you are likely looking for ways to save on your freight charges.  Sending bulky items to various destinations by land, sea or rail can be quite pricey, and can consume a great deal of your profits.  However, there are methods you can use to watch your freight shipping costs decrease.  Use these tips to learn more about how you can save money on freight shipping.

Always Aim For Full Truckload (FTL)

One of the best ways for you to make sure that you aren’t overspending on your freight shipping costs is to always aim for a full truckload (FTL).  This is so vital because every time you send out a shipment that is less than truckload (LTL), you are absorbing more costs in the form of additional fuel expenses, labor costs for the driver, and the need to have loaders on standby in multiple locations.

Instead of paying these extra fees, pack each of your trucks as tightly as possible with every single shipment.  Make arrangements with your clients so that they understand that they will receive their shipment in conjunction with other customers who live in nearby locations.  You may have to offer discounts in order to ensure consumer satisfaction if there will be substantial shipping delays.  Doing this helps to keep your shipping costs as low as possible.

Consider Freight Management Consulting

Enlisting the help of a qualified freight management professional is another great way for you to save on your shipping costs.  A freight manager will take a look at your overall shipping program to find out if you are indeed receiving the best deal.

For example, you may be working with a freight shipping company that is promising you a hefty discount.  However, if the discount is off of an already inflated price, you aren’t actually getting a good deal.

Freight managers will also save you the time that you would have had to spend obtaining quotes for your shipments.  Rather than calling or contacting each company individually, freight managers have sophisticated software that allows them to compare rates simultaneously.  This gives you more time for business productivity.

You don’t have to consume all of your company’s capital sending packages to clients.  Before you send off your next large load, use these tips so you can get a rate that is affordable for you. For more information, contact a professional like World Cargo International Services.

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Practical Ways To Lower Your Freight Costs

Posted by on Jan 15, 2015 in Blog | 0 comments

The importance of freight companies to global trade cannot be overstated. Few could have predicted the success of the world’s largest shipping and cargo companies when they first came into existence. Now both large and small businesses rely on these freight carriers to ensure that goods reach their customers in a timely fashion. Like other business owners, you will no doubt be constantly looking at ways to reduce your costs while continuing to get the same level of service.

Whether you use air freight or sea freight, you can lower your expenses, and eventually deliver savings to your customers:

Compare the Benefits of Each Service

It is unlikely that any one carrier will be dominant in every aspect of the freight business. In fact, some aspects of a company’s services may suit your business more than they would another type of business. Some freight companies are better at handling large packages, and of course, there may be times when overnight air freight is critical. Companies sometimes offer varying rates for the same shipping service, so by making comparisons you can come out ahead.

Combine Your Shipments

When the delivery of specific goods is not time-critical, putting them together in one large shipment will save you money. This is similar to buying goods at higher volumes and therefore getting lower prices. Shipping companies often offer better rates per pound for larger shipments. Packages that have been ordered can be held for a day or two so that other items can be added to the load. You may also be able to negotiate better rates with the shipping companies based on the volume of your cargo.

Pass on Some of the Cost to Your Customers

This might seem like an unsavory idea that will increase the prices of your products, but it is a common practice. Businesses regularly add a small percentage to their shipping costs to help keep their profit margins stable.

Be realistic about what your customers will likely be able to afford and you will avoid putting too much of a burden on them. Some businesses calculate a percentage based on the cost of the items being shipped. Some add a flat fee across the board for all shipments.

Help the Carrier with Round Trip Openings

When a shipping company does not have to take back empty containers, their resources are utilized more efficiently. If your business has other locations, examine the possibility of transporting goods back after the first shipment is concluded. It may also be possible to contact other businesses to determine whether they may be able to utilize these empty containers on the return trips.

Examining your distribution channels and fine-tuning your shipment forecasts can also help to save your business significant sums of money. It is usually more cost effective to send directly to customers or to stores as opposed to distribution centers, which will add another layer of costs. Communicate effectively with freight carriers, and make sure that you fulfill your contractual obligations to retain a strong business relationship. 

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