Use appropriately sized packaging to avoid dimensional weight charges. This reduces the overall volume and weight of the shipment, leading to lower costs. Combine smaller packages into a single, larger shipment when possible to take advantage of bulk rates.
Use a Transportation Management System (TMS)
- Route Optimization: A TMS can help you choose the most efficient routes and carriers, saving both time and money.
- Rate Comparison: TMS platforms allow you to compare rates across multiple carriers, ensuring you get the best deal for each shipment.
Negotiate with Carriers
- Volume Discounts: If you consistently ship large volumes, negotiate with carriers for better rates. They may offer discounts based on the frequency or volume of your shipments.
- Long-Term Contracts: Consider entering long-term contracts with carriers for fixed rates, especially if you expect shipping costs to rise.
Choose the Right Mode of Transport
- LTL vs. FTL: Assess whether Less Than Truckload (LTL) or Full Truckload (FTL) is more cost-effective based on your shipment size and urgency.
- Intermodal Transport: Consider using intermodal transport (combining truck, rail, sea, or air) to find the most economical shipping method for longer distances.
Optimize Shipping Schedules
- Flexible Scheduling: Shipping during off-peak times can often result in lower rates. Be flexible with your delivery dates if possible.
- Plan Ahead: Book shipments in advance to avoid last-minute surcharges or expedited shipping fees.
Leverage Freight Classifications
- Accurate Classification: Ensure your freight is accurately classified according to the National Motor Freight Classification (NMFC) system. Misclassification can lead to unexpected charges.
- Reclassifying: If your freight’s density or handling requirements change, reclassifying it to a lower-cost category can save money.