How To Lower Your Freight Forwarding Costs

Logistics has always been a cost and resource intensive operation. If your business operations involve frequent shipping and logistics, then you must be well aware that freight and logistics account for quite a large chunk of cost and resources. While, these costs cannot be cut down largely, there are a few ways which could help you save between 2 % to 20% on your freight forwarding cost.

While there can be many ways to optimize and reduce the freight costs depending on your business requirement, below are some of the common tips that would get you started.

Common Things That Can Help You Lower Your Freight Costs

  • Evaluate Your Freight Transport Mode – Freight can be moved through air, land or sea freight; each of these modes have their own characteristics and price. While air freight is faster and reliable, it is also a costly option. At the same time, sea freight takes more time, but is reliable and less expensive comparatively. While road transport is feasible when the origin and destination are well connected through roadways. Consider re-evaluating your current freight mode for a possibility to reduce your freight forwarding cost.
  • Consider a Transport Mix – You may be used to shipping in a way you always have been doing through air, sea or road transport. Have you considered hybrid transportation? Hybrid transportation, or a transport mix, can lower your cost and time of freight forwarding. Many companies who are looking to optimize their cost and time, take the advantages of all the freight modes, by opting for a mix of air freight and sea freight or air freight and road freight.
  • Consolidate Your Goods – Consolidation of goods can help you reduce your freight expense. Consolidating goods from multiple suppliers or vendors and shipping will help you in reducing costs. While this may not be a practical option for many businesses, if its doable for your business, you are sure to save some of the costs.
  • Consider Shipping During Non-Peak Days – Even freight forwarding has its peak and off-peak days and hours and this can impact your freight shipping cost. Find out these hours in your region and consider making the best use of these times to ship your products. Sundays and Fridays in the Middle East region are typically slow. Depending on the goods that you are shipping, you can plan your shipping schedule; and yes, this will not be a good idea if you are shipping perishable goods., obviously.
  • Plan Your Shipments Well – Planning your shipments thoroughly and well in advance can help you reduce your freight cost considerably. Example, if your shipment has to reach its destination on a specific date, say 1 month from today, if planned, you will have enough number of days to consider sea freight which takes time but is reliable. But, if unplanned, this could take you a few days to prepare your shipment, leaving you with less shipping time. In such a case, you will have to opt for express air shipping, which can increase your freight cost considerably. This can be applicable to non-perishable items for obvious reasons.
    Another reason to plan your shipments is that you can consolidate and ship your goods (one or more products) at once, rather than shipping your goods on need basis – thus ending up shipping goods more frequently than required. Consolidation and shipping lesser number of times will help you lower your freight forwarding cost considerably.
  • Plan Your Packaging Needs in Advance – Packaging is a vital part of your freight, though the packaging material does not account for the cost – but the way of packaging your goods for shipping can help you reduce your freight forwarding cost. Packaging requires to ensure the safety of your goods, thus using air bags, strapping and blocking is vital. However, it is over -used many a  times, which can result in increasing the cost of your shipment.
  • Do Your Homework On Additional Charges That May Apply – International shipping includes many duties, taxes, brokerages or other carrying costs. Ensure that you are aware and have asked the shipping agent or line of all the taxes, overheads, handling and other fees that may be applicable and should be accounted for. This will help you better estimate the cost of your freight and reduce unwanted charges.
  • Hire A Freight Forwarder Agent – Freight forwarding and clearance in one of the most complex processes that includes a lot of documentation and understanding of the shipping industry. While many big companies have their own logistics department, there are several others who prefer outsourcing their shipping to a Freight Forwarding company like ProConnect Integrated Logistics, who are experts in the field and can help you lower your freight forwarding costs a great deal at a minimal fee.

ProConnect Integrated Logistics is a third party logistics company with a vast freight forwarding network and can help you streamline your logistics at a reduced cost and no hassles. Check out our freight forwarding services here or simply Get Quote from us today!

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Erika Brady
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Erika Brady

Your advice to figuring out your shipping schedule for the type of goods you’re transporting, especially when they’re perishable, would be a great way to determine the best days to keep them safe and help them arrive on time. My uncle wants to open his own grocery store and has been wondering how he would transport the product he plans to sell. It would probably be best for him to find the best days and then go online to research transportation companies to figure out their availability and to ensure he finds one that is experienced with the perishable goods… Read more »

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