Shipping fees are one of the most significant expenses for most manufacturers, distributors & retailers. For businesses that offer free or reduced-rate shipping (sometimes based on the amount spent), it’s a cost that gets absorbed by the organization. When transportation providers raise rates, businesses feel the financial impact. Click To Tweet
Rising Shipping Costs
Your business has to ship. There’s no getting around it. Here are three cost-saving shipping tips for every small business:
1) Compare Rates
Shopping for the right rates can save you a significant amount of money. Rates can fluctuate for each carrier, especially when gas prices are on the rise. For businesses shipping freight, there are online transportation management systems that make shopping for transportation rates an efficient process, like the LTL Rate Shopper from Freight Cowboy. This service lists current rates and available service levels for a variety of carriers.
2) Know Your Product
All products for the shipment should be accurately designated on the OBOL, since declaring the wrong class or weight and dimensions to a carrier will result in additional charges plus a fee for having to perform the reclassification or reweigh. Getting your class, weight and measurements right from the start will help you avoid delays and surprise fees.
3) Shipment Consolidation
Shipping multiple packages or skids to the same address on the same? If parcel, place them into one box to avoid individual fuel surcharges or additional charges for shipping. If LTL, combining orders, if possible, will lower your price per CWT thereby lower your total cost. As well, if the combined order totals six (6) or more pallets you may be better off getting a “spot” quote from LTL providers, most have a pricing department that handle these types of quotes.
Use a Freight Broker
Using the right freight broker gives you a resource to help you find the best deals on daily basis for inbound or outbound freight shipments. Getting the best rate depends on gathering the correct shipment characteristics, understanding the needs of your consumer from a transit perspective and matching those requirements to the right carrier, which are all things a freight broker can assist with.
Shipping rates will continue to rise due to demand, fuel prices, and carriers seeking to boost their own bottom lines. Businesses must adopt proactive strategies to offset or eliminate rate hikes.
Contact Us to learn more about getting the best shipping rates for your small business.