What Can You Do to Reduce Freight Costs for Your Business?
Did you know 2021 saw a steep increase in global freight shipping rates, with companies throughout the world spending $150 billion? This upward trend does not look like it will slow at any time, so it can be important to know some freight shipping strategies that can help businesses lower shipping costs.
But how can companies reduce freight costs? Let us look at some of the best freight shipping tips to help you lower these costs for your business.
How Can Companies Reduce Freight Costs? Choose the Right Transportation
There are three main ways of shipping: by ocean, ground, or air. The kinds of goods you are transporting, as well as where they are transported, will advise you to the best mode of shipping them.
You need to compare costs and lead times for each option and have a clear budget in mind for freight shipping. If you need international shipping, for example, shipping by ocean is cheaper but it will also take longer. By weighing the pros and cons of the freight shipping methods, you can find the one that works best.
Freight Shipping Strategies: Work With Volume
If you have the majority of your shipping going in the same lane, you can speak with your carrier about volume discounts. The cost of freight shipping can dip significantly if you can manage to ship with a volume discount.
Combine small shipments, if you can, to make for less frequent shipping is easier for the carrier, so they will usually consider working with volume shipments. You can save between 2 and 12 percent using this strategy.
Freight Shipping Tips: Be Smart About Packaging
You do not want your packaging to take up a lot of space when shipping. You want to reduce the amount of space an individual product takes up so you can ship more goods without seeing prices shoot up.
Find packaging options that can keep your goods safe but that reduce the dead space in the load. You may also want to consider lightweight packaging options to reduce the weight of the freight.
Choose Off-Peak Times
Off-peak times shipments will be more affordable than shipping during peak times. Whether you can do this will depend on the type of goods you provide and if off-peak will be suitable for your clients. If you are dealing with perishable goods, for example, this may not be an option.
Many carriers offer discounted rates during off-peak times. Typically, off-peak times means picking up the freight later in the day or on weekends. Be sure to compare different carriers to find the option that works best for your needs.
Maximize Your Freight Efficiency
If you have ever asked yourself “How can companies reduce freight costs?” you now have the answers. These freight shipping strategies can allow you to be more efficient with your shipping while also reducing costs. It can make a huge difference in your business’s bottom line.
At Big Sky Trading, we can help you with all of your warehousing and freight shipping needs. You can learn more freight shipping tips when you contact us right now!
