How To Reduce Freight Costs

Oct 5, 2021

Many shippers just assume that the way that they ship freight and the amount that it costs is a fixed number and will never change. But just because something has always been done a certain way does not mean that you shouldn’t try to find more efficient ways to get it done. There are many different ways that you can reduce freight costs, some that you can start implementing today.

Contract A Steady Lane Volume

If your carrier knows that they will work with you every day, and will get a regular flow of freight in the same lane, then they can make those backhauls and build out their network. As a result, you can pay less because your carrier will be more efficient. And, carriers will focus more on moving freight that belongs to businesses that are loyal and have reliable freight volumes.

Try To Ship During Off-Peak Days

Shipping a day late or early can help give you big savings. Friday is usually an off-peak day for shipping consumer goods since most customers try to get their product in store by Thursday so that it can be stocked on shelves by Friday and ready to sell over the weekend. Mondays are also usually low volume days when carriers are looking for freight. It will depend on the cargo but shipping off-peak is a great option for shippers of non-consumer-type products.

Find A Consolidation Program Nearby To Help Handle Your Smaller Shipments

Retail consolidation is a no brainer. You will combine your LTL shipments with other companies nearby shipping to the same mass retailers and grocery chains for direct delivery. Everyone wins in this situation. Even larger suppliers do this. And retailers will receive their loads on time while suppliers pay less.

Develop Relationships Rather Than Be A Serial Rate Shopper

You might be tempted to reduce freight costs by shopping around for new rates every year, however, ending relationships and starting fresh with new carriers might not be the best approach. But, when you work with the same shippers over a long period of time, you will build a rapport with them and create long-term relationships, which they can then work with to create transportation management advantages that have positive effects on the bottom line.
Going with longer-term contracts will help give the carrier more time to gather other customers in the area to make sure that they create more efficient networks. A carrier who is working to maximize assets is more profitable, and that means they will be able to afford to give you more competitive rates if you continue to work with them. Going with a longer-term contract will also lock in a specific rate for you, rather than changing and possibly going up each year. Plus, you can enjoy better service from a carrier that you’ve worked with long term. And that’s priceless.