Shipping is a profitable market whose processes can be easily optimized with the help of logistics tools. After all, freight savings and simplifying other processes are still among the major logistics challenges. If you’re wondering how to reduce freight costs, then read our ultimate guide, which highlights the challenges and solutions to help you minimize costs.
Freight cost issues
The difficulty is in the fact that many factors shape the freight rate: the peak season with a sharp increase in demand for transportation, changes in the carrier's pricing policy due to the financial crisis, weather conditions, general market trends, and even political instability in the region.
Do you really have to wait until the demand for shipping decreases and the carriers reduce freight rates? That's a long shot, and it's not certain that it will work.
Even during the peak season, for example, at the end of the year, when requests for transportation are flowing in a steady stream, there are cost factors that you can take into account to save money.
Practical steps to reduce freight costs
Optimize cargo loading
When it comes to freight cost savings, you can use the Load Calculator to get the optimal container stuffing model and to know the best selection of a suitable transport unit (container or truck), allowing you to avoid overpaying for unnecessary space. Decide the following:
- mode of transportation
- type of packaging
- dimensions of your goods
- the need to palletize the cargo
- a transport unit according to your requirements or by automatic selection
As a result, you quickly receive a cargo packaging scheme where your goods do not take up extra space. This helps save you time and helps you manage freight costs.
Maximize savings even over long distances
It is possible that you will deliver your goods not to the port but to a place far from it. To simplify the logistics process, in the Distance and Time tool, you can calculate the distance to the location or port. This will help you decide whether one vehicle will be enough or whether you still need multimodal transportation (2 or more types of transport for one route). By the way, multimodal shipping helps you save money on the storage of cargo.
The Logistics Explorer tool allows you to compare shipping routes to analyze time and reduce freight costs on transportation for more savings.
Select off-peak seasons
During popular delivery periods, the cost of service and freight increases. Also, it is worth considering not only peak months but also busy days. It is more likely that there will be fewer shipments on Monday as carriers replenish warehouses and communicate with customers. Friday is also a day when traffic is not as high.
Make groupage cargoes of small batches
The key to a cost-effective logistics company is groupage cargo. If several customers have the same route, it makes no sense to pay for several places, excess fuel, etc. This cargo consolidation from multiple customers allows you to pay for all fees only once, not each time for a separate cargo.
How Logistics Explorer optimizes transportation costs
The user-friendly Logistics Explorer interface will select the best freight rates in its market in real-time based on the parameters of your cargo, the preferred method of transportation, and the places of departure and destination.
Thus, you analyze the route and choose the most suitable freight rate for yourself. After that, SeaRates will organize the shipping with a carrier based on your needs.
You can pay for the route booking and reserve the freight rate immediately. Or you can contact the SeaRates team, which will be in touch after payment and help you arrange your transportation, including help with documents.
Finally, you fully control and optimize the budget for the entire logistics, select the best route, use the Request a Quote function to get an invaluable offer for transportation, and get the best solutions from carriers and our team.
Why do I need to seek help from specialists?
You can get some privileges by contacting experts:
- SeaRates already has many established contacts with carrier companies. This constantly growing network helps you decide on the best deals, taking into account all your individual logistics needs.
- Shipping automation of all delivery processes by sea, land, and air.
- After booking freight for transportation or other services, you are not faced with incomprehensible documentation.
- Customized route planning strategies can be quickly implemented with SeaRates' tools. This way, you can easily change routes based on time and freight rate.
- Long-term shipping contracts with carriers offered by SeaRates can allow you to enjoy freight cost savings. Also, it is an opportunity to establish reliable contact for further transportation. Thus, you reduce the likelihood of freight cost fluctuations if you conclude contracts for 6+ months. This means that for any destination, you can get discounts, guaranteed space, and 24/7 support.
Conclusion
To make your logistics campaigns more productive, cost-effective, and easy to manage, you are provided with comprehensive digital solutions. So you instantly compare costs according to your needs.
For the company, the issue of saving money and other resources requires a comprehensive approach that consists of qualified support from experts with experience in reducing freight costs and applications that are solutions for real-time calculations and detailed planning of maritime logistics.
Please contact us at [email protected] for assistance with your cargo logistics.
