Freight costs account for a large portion of your company’s expenses. So, if your business deals in large quantities of inventory, transportation costs can have a significant impact on profits. By reducing the domestic freight costs on a day-to-day basis, you can significantly improve your company’s bottom-line. Here are tips you can use to reduce freight costs:

Type of Transportation

Ocean shipping is often cheaper than air, especially if you are shipping internationally. The best mode of transportation will depend on:
• The type of goods you’re transporting
• The travel distance
• Your deadline
• Budget

Mix It Up

Investigate the possibilities of hybrid transportation. A combination of air, ocean and ground transportation can reduce costs and transportation time.

Backhaul Shipping

Backhaul shipping can further reduce freight costs because carriers attempt to fill empty spaces heading back to base. So, look for carriers based near your destination centers and ship-to points. Filling empty miles is the way carriers make more money, and a great way for you to reduce expenses.

Ship Less Regularly

Shipping in bulk is typically less expensive than shipping the same volume of product in multiple, smaller consignments.

Ship A Fixed Volume

Ever wondered why larger businesses often agree to purchase a steady lane volume with the carrier? The recurrently purchased space enables the carrier to market his backhauls effectively. Therefore, he is able to offer the shipper discounted rates and preferential treatment – the carrier is more efficient, the shipper pays less – everybody wins!

Ship Off-Peak

Shipping on off-peak days can create significant savings. For instance, because most customers try to get their product to store by Thursday in order to have it shelved by Friday and ready for sale at the weekend, Fridays are typically an off-peak day for shipping consumer goods.

Rethink Packaging

Reducing dead space will usually result in lower rates. Stacking the product so you take fewer pallet spots, boxing it differently, improving vertical space all help make it easier to pack more efficiently and get more cargo onto a pallet and into a trailer/container.

Reduce Dunnage

Many products require protective packaging (air bags, strapping, blocking and bracing) to prevent breakage or damage during a trip across the ocean or on a long-distance truck ride. Carriers can give you advice on how to reduce the dunnage without increasing damage.

Consolidate

Try to find a consolidation program near you in which you can consolidate your loads with like-shippers. Moreover, do not forget about your competitors; just like you, they will also want to reduce the costs of logistics.

Why J. M. Rodgers Co., Inc.?

With almost 65 years’ experience, J.M. Rodgers Co, Inc. is a leader in Freight Forwarding and Global Logistics. We specialize in worldwide importing/exporting and air and ocean freight. Our global network allows us to provide competitive pricing and customized services in every major port. Contact us today to help you to identify and implement simple changes that will reduce your freight costs.