Shipping costs are among the biggest issues small businesses face. Finding a way to cut costs while getting exactly what you need is vital. The world of shipping can be confusing and filled with questions. Where do you find the best carriers? What is the cheapest option? It may seem overwhelming to try to figure out how to further your business while keeping costs down, but don’t stress! With these 5 tricks, you’ll be able to keep your shipping costs down, reducing stress and expanding your business’s reach.
For small and medium-sized businesses, scheduling shipments isn’t always the first thought on someone’s mind. Whenever a shipment needs to be sent out, it’s simply scheduled and done with. But when you’re shipping multiple times a week, it can begin to be expensive. It may seem like there’s no right answer to lower costs, but there is.
The best method is to combine into weekly or bi-weekly shipments to cut costs. If several shipments are heading to the same destination, it’s better to send them all out at once than multiple times. This not only improves expenses but makes it easier to track one shipment instead of multiple and eases the pain of packaging multiple times a week.
It’s also best to consider how you package your freight. If possible, you can stack and shrink-wrap boxes together onto one pallet. It takes up less space and makes it easier to load and unload, helping to cut shipping costs. If unable, there are other ways to package freight that save space.
In the trucking industry, supply refers to available carrier capacity, such as trucks, drivers, and the ability to move freight across a certain timeframe. Demand is the volume of freight that needs to be shipped. Supply and demand directly influence how much it costs to ship freight. Watching shifts in the market is important, but so is understanding the terms used by the freight industry.
A few standard supply and demand trucking terms to know include:
Deadhead: refers to when a truck driver is returning with an empty trailer.
Backhaul: the loads that trucks take on return trips that go to the original point of origin.
Headhaul: when shipments moving from point a to point b cost more than when they go from point b to point a
By understanding supply and demand, you are able to determine when to look for the best rates. There are certain times of the year where rates may increase due to how busy it is, while other times rates are low because the market is stagnant. Locations also may determine the supply and demand of their market. There could be more shipments that need to be brought into Atlanta from Boston than there are shipments from Atlanta to Boston. By noticing small shifts in the market, you’ll be able to find the best rate.
Carriers are legally required to provide limited liability coverage, but what does that mean? With limited liability coverage, the total value of your shipment may not be entirely covered. If damage or loss occurs, you’re losing money, depending on the freight. It’s best to have additional insurance that covers the total value of your shipment.
There are specific types of freight that may not be covered by some policies as thoroughly even after insurance. Some of these items include fresh food, expensive jewelry, antiques, and certain electronics. Always make sure to read the fine print when buying insurance; you don’t want any surprises when something goes wrong.
Your freight is important and should be protected. Our freight agents are available to help with any insurance questions you may have.
Finding the right carrier for you may take time. Going from carrier to carrier, comparing quotes yourself, and checking their routes would be time-consuming and stressful. But it doesn’t have to be. With a third-party logistics company (3PL), you’ll receive guidance about what shipping rate is just right for you.
By using a 3PL, you’ll gain access to a transportation management system (TMS). A TMS is a logistics software commonly used by 3PLs. Using this system, a freight agent will be able to automatically compare rates and routes between carriers, narrowing the selection to what works best for you. They’ll give you guidance on which route is faster, which carrier has the best rates, and what shipping method is best.
Transportation management systems take the stress out of shipping freight. TMS saves time and money, making it essential to a growing business.
The best and most cost-effective option is to partner with a 3PL brokerage. Partnering with a 3PL, such as FreightCenter, allows your business to expand supply easily and efficiently. Our TMS allows our agents to quickly sift through carriers, routes, and rates to find you the best solution. It may seem daunting, but with the help of our expert agents, you’ll find what works best for you.
When working with a 3PL, you’ll be connected with real people who work hard to get your freight to where it needs to be. Rather than scrolling through carrier after carrier, you only have to focus on submitting the right information about your freight; we’ve got the rest handled for you. We’ll walk you through every step and answer any questions, from getting a quote to after delivery. You’ll receive expert insights on how to consolidate your shipments, get the right insurance, and what times are cheaper than others. You’ll be equipped with all the information needed for your shipment, and a team behind you ready to help.
FreightCenter is here for any and all questions you may have about shipping freight. Call us at (800) 716-7608 or get a free online quote today.
