7 Tips to Cut Down on Freight Costs

It seems like freight costs are always going up, year after year. Companies charge extra fees for everything from fuel surcharges to insurance package weight.

There are multiple ways to help reduce shipping costs. Below is a list of 7 tips to help significantly reduce your freight costs. Most of these tips will save you money without your even having to talk to a shipping company.

1) Reduce Package Weight

Shipping costs are a big part of the cost of doing business online. If you want to reduce your expenses, it makes sense to cut out unnecessary packing materials. You don't want to add extra pounds to your packages just because you're trying to save money.

Packaging materials weigh a lot

You might think that the box itself isn't very heavy, but most actually weigh quite a bit. For example, a typical cardboard box weighs about 2 pounds, while a typical plastic bag weighs around 0.5 pounds. This extra weight can add a lot to the total cost of shipping.

How to reduce package weight

The good news is that there are plenty of ways to trim off some of that excess weight without having to resort to sending things via snail mail. Here are three ideas to help you slim down your package weight:

1. Send flat shipments rather than boxed goods.
2. Pack heavier items in smaller boxes.
3. Ask your shipper if they can use less packaging material.

2) Reduce DIM Weight

The amount of space a package occupies compared to its actual weight is referred to as its DIM weight. You will be charged for each shipment based on the actual weight of the package or the dimensional weight, whichever is larger.

The positive news is that there are ways to lower your DIM weight without compromising quality. By reducing the DIM weight of your packages, you can save a significant amount of money.

3) Combine Shipping Boxes

It may be possible to cut costs associated with shipping by combining multiple packages into a single box. Think about combining the shipment of many products to a single box if you frequently send multiple items to the same customer.

You will save money by doing things this way because you won't have to pay additional fees to have each item transported individually. Additionally, you will spend less on the price of delivery and the supplies required for packaging.

4) Avoid Paying for Expedited Shipping

Avoiding expedited shipping charges isn't rocket science. However, some preparation and thought must go into it beforehand. Here are three things to consider to avoid these charges.

Inventory management: If you're running low on stock, consider delaying shipments for a few days. This way, you won't have to expedite shipments to meet customer demand.

Accurate details: If you expect your shippers to be ready and accurate, you need to demonstrate the same level of preparedness and accuracy.

Shippers make their plans based on the fact that they will be transporting precisely what you instruct them to. This includes things like weight, size, shape, and securement, among other things.

Preparation for the future: Even though you aren't in immediate need of expedited delivery, that does not mean that you won't be in the not-too-distant future.

It's one of those things that happens all of a sudden and takes you by surprise. If you wait until the last minute to look into rapid delivery options, you will end up paying higher rates and running a greater risk of receiving subpar service.

5) Cut Down on Shipping Distance

Shortening shipping distances reduces shipping costs and delivery times. In North America, the average shipping distance is around 3,200 km.

To reduce the cost of shipments, we suggest looking into different ways to shorten the distance. This includes reducing the size of the packages, using alternative modes of transport such as air or sea freight, and having more warehouses closer to customers.

6) Discuss with Carriers

Carriers are always looking for ways to save money. They do it by offering discounts to large volume shipping companies.

But smaller companies don't necessarily know about those deals. In fact, many small businesses don't even realize there are discounts out there.

So how does a small business find out about carrier discounts? And what is the result if you decide to take advantage of one?

The answer is simple: You call your carrier and ask. Carrier representatives are happy to help. Because they want to maintain a satisfied clientele, they will typically inform you about the various discounts that are at their disposal.

You may have the option to sign up for email alerts from your carrier if you are interested in learning about possible discounts. In this way, you will avoid missing out on any deals.

Your carrier may also offer discounts to customers who use certain types of packaging materials.

Some carriers require you to use specific boxes or envelopes. Others will let you choose your own box or envelope type. Ask your carrier representative if he or she knows about any special discounts for particular packaging materials.

Finally, some carriers offer discounts to customers who pay for their packages early. These are called advance payment discounts.

Make sure you understand exactly how much you'll save because sometimes carriers charge different amounts depending on whether you pay for your shipment within 30 days or 60 days.

7) Consult with Experts

More and more frequently, third-party logistics organizations are providing solutions for flexible warehousing.

These businesses are familiar with the best techniques for packaging products and shipping them safely. They frequently provide online retailers with cheaper delivery rates than their competitors do.

Certain third-party logistics providers have made it their area of expertise to serve the needs of online businesses. These businesses generally collaborate with other carriers to bring your items to market as rapidly and effectively as possible.

When you deal with a third-party logistics provider, you are free to focus on running your business rather than stressing out about shipping logistics.

Because of this, you are able to make more informed choices for the benefit of your firm, enabling you to spend more time doing what you are most skilled at, which is running a business.

Conclusion

In conclusion, if you're like most Americans, you spend too much money on shipping costs. But don't worry—there are ways to cut down on freight costs without sacrificing quality or convenience. We hope these seven tips will help you save money and enjoy better service on all of your shipping.

At A-1 Auto Transport, we make it our business to stay up to date on the latest developments in the shipping industry. Contact us anytime to learn about our comprehensive range of shipping services.