It is sometimes hard to calculate your shipping costs before moving goods. Still, popular business practices can help you lower the overall costs and minimize the risks of unnecessary transit expenses.
What factors affect transportation costs?
The cost of transportation services depends on various aspects of the supply chain organization. Some of them are out of your control – you can’t influence the fuel prices or the tax amounts that the governmental institutions regulate.
However, you can adjust many factors that depend on you as a business owner, thus reducing the final shipping costs. For example, you can improve your planning skills to book a shipment at better rates, provide the carriers with exact load information to avoid calculation mistakes, and try road mapping to detect optimal shipping routes.
How to reduce freight shipping costs?
Shipping can be a costly task that may exceed your planned budget, but there are ways to make sure you keep transit expenses in check. Whether it’s your first or fiftieth time delivering goods, we have compiled a list to help you reduce shipping costs to a minimum.
Understand your freight class
Freight class helps the carrier understand the load better. It provides information about the weight and density of your items, which influences how you ship them. If the item is dense and light, you will have a lower cost because it is easier to handle and harder to damage. Besides, understanding the freight class identifies the most suitable transport means for your shipment.
Record accurate measurements
Knowing your freight’s exact size and weight is essential to facilitate shipping. The more accurate are dimensions, the better you can evaluate the required shipping capacity and the possibility of using additional services. If your measurements are incorrect or missing, your carrier will have to do calculations independently, which would incur extra shipping costs.
Packing your item with less bulk is an excellent way to remain cost-efficient. If you can reduce the volume of packaging materials in your shipment, it could allow the allocation of more items. However, it is vital to ensure you pack the cargo safely. Many packaging suppliers today offer compressed packages that retain all their protective features.
Palletize and stack your freight
Placing your freight on a pallet makes loading and unloading operations easier. Efficiency in handling cargo will help keep your costs low and save the carrier time – a win for both parties. Besides, palletizing is one of the best ways to secure your cargo during transportation. If your freight can be stacked, you can reduce the unused space within the trailer, thus increasing the number of added boxes.
Collect required paperwork
Shipping documentation provides evidence of delivery and guarantees the uninterrupted flow of financial operations. These documents typically contain the items’ descriptions and general cargo characteristics. An improper or incomplete paperwork pack can cause many legal charges or block you from receiving the payment. Verify you’ve prepared the Bill of Lading, got an invoice from the carrier, and requested other additional documents.
Ship closer, not further
Shipping to remote locations naturally results in higher costs. Still, it doesn’t mean you have to cut or change your shipping routes to spend less. Consider mowing your goods from a more central spot or a hub to speed up the delivery and save your transportation funds. Try to cooperate with a strategically located storage space, so the carrier can pick up the ordered items straight from the warehouse and complete the shipment much faster.
Plan your peak shipping costs
Peak shipping days are typically the start of the week (Mondays and Tuesdays). Businesses like to receive their products by Wednesday and Friday to ensure they have everything in place for the weekend. It gives you a helpful hint to plan your shipments early and avoid long tailbacks and possible disruptions. You can book the carrier service in advance, which promises better choices and lower transportation costs.
Only use what you need
Some shipping situations entail additional fees that are often unexpected. Investigate the question of accessorial charges to see whether you need them or can perform specific tasks by your means. If you’re still looking to add accessorials, keep them at a minimum since they will increase your shipping costs.
Research carriers with affordable shipping costs
It is always best to understand your carrier preferences to accommodate the freight appropriately. When looking for professional shipping services, please consider the main criteria, such as their operational area and suggested transport options. To make the right choice of carrier, stick to your budget and shipment timelines.
Choose a provider with reasonable shipping costs
Using a reliable provider for your freight transportation is crucial to reducing shipping costs. A good provider would have an extensive list of carriers across their service region. They will also advise you on the shipping mode that suits your cargo to prevent you from overpaying for the excessive trailer space.
At GoShip, we prioritize shipping efficiency and affordability. We will connect you to many experienced carriers and help you plan your shipment with our online tools.