As a business owner, freight shipping is likely a significant part of your supply chain. Shipping costs can eat into your profit margins, especially as the global supply chain faces ongoing disruptions, rising fuel prices, and fluctuating demand. At Red Arrow Logistics, we understand how important it is to keep shipping costs under control. Whether you’re moving goods across the country or internationally, cutting freight costs can result in big savings for your business. Below are essential tips to help you reduce your freight shipping expenses while maintaining efficient and reliable delivery.
1. Consolidate Shipments
One of the easiest ways to reduce shipping costs is by consolidating shipments. Instead of shipping smaller quantities frequently, try combining them into larger shipments. Less-than-truckload (LTL) shipping is generally more expensive than full truckload (FTL) shipping on a per-pound basis, so consolidating shipments can save you money.
2. Negotiate Freight Rates with Multiple Carriers
If you’ve been working with the same carrier for a while, it may be time to review your rates. Freight rates are not fixed, and you can negotiate with carriers to secure better deals, especially if you have a consistent volume of shipments.
3. Optimize Packaging to Reduce Dimensional Weight
Dimensional weight (DIM weight) refers to the amount of space a package occupies, regardless of its actual weight. Carriers use DIM weight to calculate shipping costs for packages that take up a lot of space but are lightweight. By optimizing your packaging, you can reduce the DIM weight of your shipments, which will lower your freight costs.
4. Leverage Technology for Route Optimization
Route optimization technology can help you identify the most cost-effective shipping routes. Many logistics companies use GPS and advanced algorithms to map out the shortest and most efficient delivery routes, which can reduce fuel consumption and transit time.
5. Utilize Freight Class and Tariff Negotiations
If your business ships goods regularly, you might be able to save on shipping costs by negotiating your freight classification and tariffs. Freight class is a standardized method used to calculate shipping costs based on weight, dimensions, and product type. Reclassifying your freight into a lower class can lead to significant cost reductions.
6. Consider Intermodal Shipping
Intermodal shipping involves using multiple forms of transportation, such as trucks, trains, and ships, to move freight. This method can often be more cost-effective, especially for long-distance shipments, as it takes advantage of the strengths of different transportation modes.
7. Schedule Shipments Strategically
Timing your shipments can make a significant difference in freight costs. Shipping during off-peak times or planning your deliveries in advance can save you money, as many carriers charge premium rates for last-minute shipments or shipping during peak periods.
8. Consider Outsourcing Logistics to a 3PL
Third-party logistics (3PL) providers can offer businesses a range of services that optimize their supply chain, from warehousing and inventory management to shipping and distribution. Partnering with a 3PL, like Red Arrow Logistics allows you to take advantage of their buying power, technology, and expertise, which can result in significant freight savings.
9. Audit Your Freight Bills Regularly
Shipping invoices can contain errors, whether due to incorrect weights, inaccurate dimensions, or improper classifications. Auditing your freight bills regularly can help you spot these errors and request refunds or adjustments.
10. Consider Regional Carriers for Short Distances
National carriers are not always the most cost-effective option for short-distance shipments. Regional carriers, who specialize in localized shipping, often provide lower rates and more personalized service for deliveries within a specific geographic area.
Reducing freight shipping costs is essential for maintaining profitability and competitiveness in today’s marketplace. By consolidating shipments, negotiating with multiple carriers, optimizing packaging, and leveraging technology, your business can significantly lower its shipping expenses. Additionally, exploring options like intermodal shipping, 3PL partnerships, and freight bill auditing can further improve efficiency and cost-effectiveness.
Your Trusted Partner
At Red Arrow Logistics, we specialize in providing businesses with customized logistics solutions that help lower costs and streamline the supply chain. Contact us today to learn how we can assist you in reducing your freight shipping costs while enhancing the efficiency and reliability of your shipping operations.
Red Arrow offers the scale and scope of services including air, ocean, and ground transportation to meet the budget and schedule requirements of the largest and smallest companies alike. If we can be of assistance, please email us at [email protected] or give us a call at 425-747-7914.
