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Supply Chain Challenges

8 Strategies to Reduce Freight Shipping Costs

Larry Catanzaro | May 24, 2018

As inflation continues to drag down earnings and increase costs for U.S. businesses, companies are taking a hard look at their transportation spend and how they can reduce freight shipping costs.  Here are eight simple strategies to consider. 

1. Hold freight.  Combine multiple shipments to maximize utilization of trailer space.

2. Get to know your neighbors.  Meet with shippers in your local area to compare annual shipments.  Look for load consolidation (share the ride) opportunities.

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3. Get to know carriers who deliver into your region.  It is not always cheaper to have a local company pick up and deliver your product.  You may find that carriers who haul freight into your region are looking for backhaul runs to their origin points.  If so, they may take your products at a lower rate and reduce your freight costs. 

4. Utilize the services of a 3PL logistics company with a load consolidation program.  The concept is simple: you ship to them and they manage the "share the ride" program to the final destination. 

5. Consider low-cost intermodal rail solutions.  Shifting from over the road to lower cost rail freight can be a great way to reduce freight shipping costs. 

6. Put more freight on the truck.  This may require packaging changes that reduce your trailer space footprint. 

7. Utilize drop trailers. This gives carriers more flexibility on when they pick up your product.

8. Utilize night time appointments.  These could be very beneficial to carriers with afternoon appointments and little freight to pick up after hours

Hope these tips help.  Good luck in your efforts to reduce freight costs

Strategies to Reduce Logistics Costs in the Consumer Goods Supply Chain