If you are opting for the shipping services, then price can be one of the most important aspects that you need to consider. This is especially true in the case that you need to use the freight forwarders services in the case of business handling.

Most of the freight forwarders have this in mind that shipment arrangement is very fixed and changes cannot be done. But that is not the case as there are a number of ways through which freight forwarding expenses can be reduced.

So, here are some of the tips that will help you to make the necessary changes. Let us have a look:-

  • Evaluating the transportation method

One of the best ways through which freight forwarding expenses can be reduced is by evaluating and reconsidering the transportation mode. Further, if major shipping of cargo is done internationally, then sea freight can be a major option as compared to air freight.

On the other hand, if the freight shipping is done locally, then road or rail freight can be a great option based on the products that needs to be shipped as well as the travel time.

Likewise, various other shipping ways can be considered or you can opt for hybrid mode if needed. Thus, a combination of ground, air, sea transportation can considerably help you to cut down on the cost.

Besides this, you need to spare some time to note down the disadvantages and advantages of every shipping mode and based upon that decision can be taken for the same.

Likewise, get estimates from various other companies and come up with comparison. Also, you need to evaluate the transportation mode based on the Co2 emissions. In general, it is noticed that sea freight tend to have less emissions as compared to other transportation modes.

  • Shipping during the off-peak time

You should understand that if the shipping is done a day earlier or later, then significant difference can be made and in the process freight forwarding expenses can be reduced.

For instance, generally Friday is seen as an off-peak day when it comes to the shipping the road freight. Other than this, Mondays can be one of the slow days as well and during this time carriers are in need of road freight. Thus, it can be one of the best options that you can choose ideally. For instance, canned goods tend to have a lot more flexibility as compared to fresh goods.

Thus, you should understand that if the shipping is done on the off-peak days, then it can be one of the great options for people who are looking to ship cargo which are not time-sensitive and the product type that is non-consumer.

  • Become a regular member

One of the best ways to get the best price for the services for any given industry is to opt for regular membership. So, some-time needs to be taken out in order to know more about the shipping carrier as well as building relationship alongside with them.

Tell your carrier about how long you have been using their services and perhaps you are there loyal customer. Once the carrier knows more about the support you can offer as well as steady business that they can get from you, then they can offer you with better conditions.

So, before you choose to a new carrier, good relationship should be built with the current carrier. In this way, you can save significant money by having a long-term and strategic relationship. So, every company that is reliable would perform their best such that they can get best in class benefits.

Also, with long-term contract, better rate is offered. This can be one of the best options as compared to the prices which rise every year.

So, if good communication and relationship is formed with the shipping company, then operations efficiency can be improved. Further, freight forwarding expenses can be significantly reduced. Hence, you can save 12% as compared to the standard pricing.

Thus, proper research should be done based on options, prices and combinations of freight shipping such that it can match with your needs.

  • Ship a lot number of products

It is recommended that you ship a lot number of products less number of times less number of times. This can turn out to be a lot beneficial for you in the long run. There can be a scenario in which more goods needs to be shipped more times of times.

But, if it is not the case, look out for this method such that freight shipping expenses can be reduced.

  • Look out for additional charges

Carrier provides a lot more services rather than just driving. These include wrapping pallets, loading and unloading cargo, making extra stops to name a few. But, you should understand that all of these may not be included in the final estimation. Thus, don’t get surprised once you get the final invoice.

So, you can ask the company for any kind of extra fees that they might be charging you. Some of the extra fees are due to not applying or understanding the accessorial fees.

Thus, to understand more about all of these, shipping jargon need to be understood. Consequently, once you identify them, then they can be reduced easily and cost can be eliminated.

Some of the extra fees are residential adjustments, weight adjustments and additional handling of the fees.

  • Opt for Hybrid

Another way by which freight forwarding expenses can be reduced is by opting for mix transportation use. If the right combination of air, ground and ocean transportation is used, then transportation cost and time can be reduced significantly. So, you should ideally make the best out of all the transportation modes. Further, calculate the discounts you are getting before drawing a conclusion.

  • Hire the carriers near to ship to points

If the ship-to-points is present at the regular route, then it is likely that you can avail it at a lower rate. Also, if you reduce the total miles, then freight costs can be significantly reduced as well.

  • Select the discounts in the right way

An ideal aspect you need to keep while reducing the freight forwarding expenses is the rate which has been offered by the carrier.

You should understand that not all the carrier discounts present the same value. For instance, one carrier tends to have higher base rate as compared to other.

So, the carrier having low base rate while offering low discount would be a lot more beneficial compared to the other options which are available. Thus, proper calculation needs to be done and opt for an offer that can present you with the best possible price.

  • Increase in the lead times of the delivery

If an advance shipping notice is give, then carrier can easily line up the resources and assets. One of the major costs that the carrier pays is the trailer sitting ideally on a facility site looking for loading.

So, if better planning is done, then carriers can reduce the costs significantly. Also, planning on all supply chain aspects can be improved which includes staging, pick up and live-loading. Thus, based on the notice, scenes can become a lot more efficient and better price can be offered for the same.

  • Reputation for loading need to be developed

If we talk about global freight forwarders, reputation for loading needs to be developed. So, when the pricing is developed by the carrier, 2-hour load window need to be developed. But, if the carrier knows that cargo can be picked up in an hour, then in such a case price can be affected. Besides this, it can also incline towards the fact that carrier can work alongside with shipper.

Thus, shippers having consistent load time performance can easily get favorable load times. So, the requirement for accessorial charges can be easily reduced. Thus, a shipper that can operate in an efficient way can save significant among of money and further carrier can serve them in a right manner.

  • Pallet spaces need to be reduced

If the product cube is optimized in the right way, then more pallets can be easily packed. Hence, pallet spaces can be reduced significantly. For instance, if small components are put in into large box, then not many pallets would fit in.

On the other hand, if they are put in into small boxes, more pallets can be saved while at the same time saving up the space for the pallet. Thus, you can ask your carrier such that efficient pallets can be built.

Final Verdict

Above are some of the methods which you can use such that freight forwarding expenses can be reduced. The solution present above is very self-evident, yet there are a number of shippers who tend to ignore it. Lastly, if you are in search for freight forwarding platform, then FreightRight can be right choice for you. You get the luxury to choose the right freight forwarder based on the choice that you might be having.