Save Money Shipping Freight

Like every other aspect of running a business, you want to save money when shipping freight. Unfortunately, the freight shipping learning curve can be more expensive than necessary if you’re not careful. A lot of business operators will be surprised to learn about these three ways an alarmingly larger than expected shipping bill can be run up in no time.

Alarm #1 – Save Money Shipping Freight Directly Instead of Using a 3PL

 

One of the most common mistakes made by newbie shippers is booking their shipment directly through a carrier instead of using a 3PL (third-party logistics provider). It’s easy to understand why they make this mistake. We are taught to save money by “cutting out the middle man.” But in the case of shipping freight, a good 3PL like FreightCenter will save you money every time by helping you find the most affordable freight carrier that meets your unique needs.

To help prove this point, one of the logistics experts at FreightCenter ran a quote using two different methods. In one method they called the carrier directly and requested the price they would give to someone who was not a frequent shipper. The other method entailed getting a quote from FreightCenter’s TMS (Transportation Management System)—the same method anyone can use online to get a free freight shipping quote—using the exact same shipping details.

The quote above was for shipping from one business to another, loading dock to loading dock. No, that’s not a typo. In this case, going directly to the carrier could cost you more than $1,000.00.

Third-Party Logistics

How is it possible that a 3PL like FreightCenter can save you 65% shipping your freight? The answer is two-fold:

Before you book a shipment directly through a carrier, take a few minutes and get an instant online quote from FreightCenter. You’ll save yourself a lot of time, aggravation, and money when shipping freight.

Alarm #2 – Poor Accessibility for the Carrier on One End of the Haul (or Both)

 

You may have noticed that shipping loading dock to loading dock was specified in the above example. This is the easiest (and therefore preferred) way for the carrier to ship. It’s in and out in a snap on both ends. Any other type of access is a pain in the truck.

What if the shipment destination were to a residence? That would mean no loading dock, so a truck with a liftgate would have to do the delivery. That would add more than $300 to the bill. If the home happened to be on a small street, then a smaller truck would need to make the delivery. Cha-ching!

Limited Access

What if the delivery was to a home business? That’s a business, right? Actually, it’s not in the eyes of the shipping world. Whether or not a facility is considered a place of business or a residence is determined by zoning. If an area is zoned residential, you’ll pay residential (limited access) charges even if the destination is a business. And if the entire block has been rezoned from residential to residential/business, you’ll still pay those limited access charges if the street is narrow and there is no loading dock.

We’re not suggesting that you tell your customers to move their businesses, but we are pointing out that some businesses neglect to find out about access issues and quote a shipping estimate that is at least $300 below what the final bill will be.

A trustworthy 3PL, like FreightCenter, will investigate access issues before giving you a final quote. In some cases, depending on access to the delivery location, we might suggest that the recipient picks up the shipment at the freight depot or has delivered it to a nearby business. Either of those tactics would eliminate the limited access fees for you.

Alarm #3 – The Pallet Is Too Big

 

This one is going to sound a little crazy, but it happens from time to time. Freight attached to pallets must cover at least 65% of the surface area of the pallet. If it doesn’t meet that specification, the carrier can charge you for shipping the pallet instead of what’s on the pallet.

While that might not sound so bad, it’s actually very expensive. Freight classifications are based on density. The higher the density, the lower the class (and the lower the cost). Let’s take a look at an example.

Bricks are very dense and have a low freight class of 50 (the lowest class). But if you put bricks on a pallet and do not cover at least 65% of the surface area with bricks, the carrier would be within its rights to charge you for shipping the pallet, not the bricks. With a standard freight class for pallets of 200, you end up paying hundreds of dollars (if not thousands) more—just for using too large of a pallet.

Most of the time a carrier will look the other way when you use a too-large shipping pallet, but that one time when they don’t can put a real hurting on your pocketbook. At FreightCenter, our freight agents can help make sure you are compliant. Just give them the measurements and send a photo of the packaged shipment.

One Easy Way to Save Money Shipping Freight

 

If you’ve fallen victim to these three mistakes (or others that have cost you money), you have our sincerest sympathies. Just know that you are not alone in making costly freight shipping errors. Prefer to not do it again?

Next time you have freight to ship, save money and start by getting a quote from FreightCenter or give us a call at 800.716.7608. Look for the company that gives you the right combination of technology with a personal touch. The money you don’t waste will make you feel good. The peace of mind you get from a solid business partner is priceless.