Businesses large and small are always looking for ways to cut costs and increase their processes’ efficiency. Shipping costs account for a significantly large portion of the company’s overhead. In 2017, U.S. companies spent over $1.7 trillion on shipping costs.
One of the biggest reasons businesses choose freight shipping is because of its cost-effectiveness. In an increasingly competitive global market, it’s no surprise that many are seeking the cheapest way to ship freight to save money.
Factors Determining Freight Shipping Rates
Not all shipments are created equally. Freight rates are calculated based on several elements. Knowing the factors that can affect your shipping costs is an excellent first step in saving your company money.
A key determining factor in freight shipping rates is the freight class or method. The cost for Less Than Truckload (LTL) shipments and Partial Truck Loads (PTL) shipments that take up less space in a transport is generally lower because it can be split between shippers.
Size and Weight of the Shipment
The size of your shipment and how much it weighs are vital components in determining shipping costs. Heavy items are naturally more expensive to ship than smaller, lighter loads as they require more fuel resources and labor costs.
Mode of Transportation
How your goods are shipped will play a significant role in how much your shipping costs will be. For example, it costs more money to ship via air than truck, ship, or rail.
Shipping Origin and Destination
The further the distance between the point of origin and the point of destination, the more it will cost to ship. Also, proximity to a major metro can have an impact on freight shipping rates. Deliveries in metro areas are typically more affordable than rural locations.
Expedited shipments typically incur higher rates and fees than a load that isn’t time-sensitive. When delivery time is of the essence, companies may spend more money to get their goods to their customers in a timely manner.
Special Handling Needs
Some goods require special attention when they’re shipped. If your shipment needs to be refrigerated or contains hazardous materials, it will require special handling and packaging, costing more.
Saving Money on Freight Shipping
If freight shipping is an essential part of your business, it’s critical to understand the factors that go into determining shipping rates. In your quest for the cheapest rates based on these factors, consider the following:
You’re probably not going to find the best rates without doing some research on your options. Understanding prevailing rates and options can help you to select the best shipping provider for your business, which will ultimately save you money.
The shipping market offers a diversity of providers, each with specific policies regarding pricing and discounts. A third-party logistics (3PL) company provides expertise in the shipping industry and has a broad network of connections that they can use to get you the lowest shipping rates possible. If you frequently ship items overseas, consider consulting a 3PL to minimize your freight costs.
Don’t Be Fooled by Discounts
Some companies will advertise huge discounts on shipping rates, but they’re often based on inflated prices. Make sure you study the logistics of pricing thoroughly before you rush into a decision on the false promise of saving money with discounted rates.
Plan in Advance
Last-minute shipping is always going to be more expensive. Planning can help you avoid overpaying and allows you to take advantage of real discounts. It can also provide added flexibility in choosing a shipping service.
Hire an Experienced Shipping Company
Planning, researching, and reading all the fine print can be overwhelming and time-consuming for a business owner juggling multiple responsibilities.
Hiring a knowledgeable, trustworthy company that understands global delivery services and the shipping process can take the headache out of price shopping, freeing you up to work on your business.
Different goods and businesses will have different needs in terms of time and cost. Asiana USA comprises a complex network of shippers that offer shipping options to suit everyone and custom-build the best shipping plan for you.
Let Us Help You Get the Cheapest Freight Shipping Rates
Asiana USA is a trusted leader in shipping and global logistics specializing in finding competitive rates for our clients from qualified carriers. From shipping labels to your goods’ final destination delivery, we will optimize your experience and offer unparalleled cost savings for all of your global logistics needs.
Call the team at Asiana USA today at (855) 500-1808 for a free freight quote and information on how we can help you estimate your shipping costs.
Your trusted partner in shipping and logistics, Asiana USA, can help you streamline your company’s shipping process to save you valuable time and money.