High shipping costs can really weigh down a business, especially if you move products or materials regularly. Those expenses can chip away at profit margins, limit growth, and make it tough to stay competitive. For many companies, figuring out how to cut down on shipping costs is a big deal.
Finding cheaper ways to ship products is key to keeping a business profitable and sustainable. If companies can get their shipping costs under control, they might see a boost to their bottom line, use their resources better, and generally get into a healthier financial spot.
Getting the Hang of LTL & FTL Shipping
For shipments that don’t take up an entire truck, LTL (Less-Than-Truckload) shipping works great. Carriers will combine multiple shipments from different companies into one truck. This spreads the transportation costs among everyone. Businesses with smaller shipments or those that need a bit of flexibility in their shipping plans will find this pretty handy.
When you have enough goods to fill up a whole truck, use FTL (Full Truckload) shipping. Here, you will get a whole truck just for your goods. This generally means quicker delivery times and better control over the shipment. For large shipments or those requiring special handling or a precise delivery schedule, FTL can be more affordable.
Whether you’re going LTL or FTL, there are a few things that can bump up or lower your shipping costs:
- weight and bulk
- distance
- classification.
- fuel prices
- services like delivering to a residential area, needing a liftgate, or handling hazardous materials
- seasonal changes
How to Reduce LTL & FTL Shipping Costs
Make the Most of Your Shipments
One of the best strategies for reducing shipping expenses is optimizing your shipments. Consolidating smaller loads into larger ones lets you fill up truck space more efficiently, bringing down the overall cost per unit. Plus, tightening up your packaging can lower the weight and size of shipments, helping you score better freight rates.
Getting your freight class right is key, too. Freight classes depend on the density, value, and handling needs of your goods. If you classify your shipments accurately, you’ll avoid paying more than you should and steer clear of unnecessary fees.
Strike Better Deals with Carriers
Having solid relationships with carriers can really pay off when negotiating shipping rates. If you show loyalty and consistent business, carriers might offer you volume discounts, special rates, or other perks.
Think about using a transportation management system (TMS) to get a grip on your shipping operations and handle carrier negotiations more effectively. A TMS can give you data-driven insights into your shipping patterns, helping you spot savings opportunities and negotiate smarter.
Get Tech on Your Side
Using online platforms to compare rates in real-time is a smart move for finding the best shipping deals out there. When you look at quotes from various carriers, you can easily spot where you might save some cash and pick the best option for your needs.
Also, consider using shipping software to figure out the best routes and cut down on transit times. The less distance your shipments travel—and the fewer delays they hit—the less you’ll spend on fuel, which can make your whole operation more efficient.
Explore Other Shipping Options
For those long-distance hauls, you might want to consider intermodal transportation. This option mixes different transport modes, like rail and truck, to make the journey as cost-effective as possible.
For shorter trips, look into regional carriers who might offer better rates or specialized services tailored to your needs. By thinking outside the box with your shipping options, you could find more affordable and efficient ways to get your goods where they need to go.
Extra Tips for Cutting Costs
Ship When It’s Not Busy
Steer clear of peak seasons and high-demand days when rates usually go up. You’ll more than likely snag lower rates and get your shipments moving faster if you choose to ship during off-peak times. Also, don’t be afraid to be thriftly and take advantage of any carrier promotions or discounts that pop up.
Go Over Your Freight Bills Regularly
Make it a habit to regularly review your freight bills for any errors or overcharges. Make sure you’re only paying for the services you actually received to avoid unnecessary costs. If something seems off, sort it out by reaching out to the carrier.
Outsourcing Logistics
If cost savings and smoother operations are your goals, bringing in a third-party logistics (3PL) provider can help. Leverage their buying power to negotiate better rates with carriers and streamline your shipping processes. They manage logistics more effectively and often at a lower cost than doing it all yourself.
Lowering Your Shipping Costs
Remember, just because you found a way to lower your shipping costs once, doesn’t mean that the costs will always stay low. You’ve got to regularly assess your shipping practices, find areas where you can do better, and try out new strategies as needed. By staying on your toes and ready to pivot whenever, you’ll keep your shipping operations running efficiently and at a lower cost.
Simplify your shipping process and lower costs by partnering with GoShip. With our innovative platform, compare LTL quotes and FTL quotes, book shipments, and track your freight all in one place. GoShip offers a comprehensive solution that makes shipping affordable and efficient.