Freight shipping costs can eat into your margins faster than you think. Many businesses unknowingly pay 20-30% more than they should on Freight Shipping Rates due to misclassifications, poor planning, and lack of negotiation. But here’s the good news: you can fix it.
What Drives Up Your Freight Costs?
Understanding what influences your shipping costs is the first step in taking control. Here are the key factors that determine your Freight Shipping Rates:
1. Freight Classification.
The National Motor Freight Classification (NMFC) system assigns a class to your shipment based on density, handling, liability, and stowability. Lower-class shipments (e.g., Class 50) cost significantly less than higher-class shipments (e.g., Class 150+).
Choosing the wrong NMFC classification can double your shipping costs. For example, a product classified as Class 150 instead of Class 70 could mean paying twice as much. Always verify your freight class before booking.
2. Weight, Dimensions & Speed: The Three Critical Factors
Carriers charge based on weight and volume, but did you know that wasted space can drive up your costs? Optimizing packaging and consolidating shipments helps you maximize every inch of truck space and keep costs down. Additionally, the speed at which you need your goods to arrive at their final destinations will impact the final Freight Shipping Rates. The sooner you need a shipment, the more expensive it will be. Rates are usually lower the more advanced notice you provide.
3. Mode of Transport: LTL vs. FTL
Your choice between LTL (Less Than Truckload), FTL (Full Truckload) can make or break your shipping budget. Many businesses default to LTL (Less Than Truckload) when FTL (Full Truckload) could save them thousands. The right mode depends on volume, urgency, and route efficiency.
4. Avoiding Hidden Surcharges
Fuel surcharges, liftgate fees, and residential delivery charges add up quickly. Identifying and negotiating these fees upfront can save your business thousands. Many businesses overlook these hidden costs until they appear on the invoice.
4 Proven Ways to Cut Freight Costs
1. Compare & Negotiate for the Best Rates
Never settle for the first rate. Platforms like GoShip let you instantly compare Freight Shipping Rates from multiple carriers, ensuring you get the best deal. Businesses that consistently ship can also negotiate volume discounts for long-term savings.
2. Optimize Packaging & Load Efficiency
Reducing excess packaging and consolidating shipments into fewer loads minimizes wasted space and reduces handling fees. The tighter your freight is packed, the more you save. Smart packaging design can lead to massive savings on Freight Shipping Rates.
3. Leverage Digital Freight Marketplaces
Freight brokers and online platforms like GoShip provide access to competitive carrier networks, often securing better rates than direct negotiations. Real-time visibility into pricing ensures that you’re never overpaying for Freight Shipping Rates.
4. Plan Ahead & Avoid Peak Periods
Freight demand spikes during holidays and seasonal rushes, leading to higher Freight Shipping Rates. By booking in advance and avoiding peak times, businesses can lock in lower costs and improve shipping efficiency.
Freight expenses aren’t just a line item they directly impact your profitability and business growth. The companies that actively manage their Freight Shipping Rates gain a competitive edge by reducing costs and increasing efficiency.
Ready to take the next step? GoShip connects businesses with top carriers, offering instant freight quotes and cost-effective shipping solutions.Secure the best rates today! Click here for your free quote