Shipping freight is big business. The global container market expects 4.7 percent growth through 2019. But if you’re business relies on shipping, you know it can get expensive.
Reducing shipping costs means bigger profit margins. But, it isn’t always easy to figure out the best ways to ship your goods and keep your costs down.
Looking for shipping containers for sale and other ways to reduce fright costs? Read on to learn five ways to reduce your freight costs in Houston.
Shipping on off-peak days has the potential of saving you up to 10% versus shipping on peak days. Most people aim for getting the goods to the store by Thursdays. The reasoning? Shelves get stocked on Fridays so consumers can buy products over the weekend.
Saturday is the busiest day of the week in the grocery store!
This means shipping on Fridays saves you money. Depending on the type of cargo you’re shipping, think about sending it on Fridays and Mondays.
Consolidate Smaller Shipments
Do you often have less-than-load (LTL) shipments?
These are small shipments that take less than a whole container or truckload. There are consolidation programs that help you find other companies shipping to the same retailers. Putting your loads together in the same cargo container helps you both save money.
Your shipments get combined into one large shipment. This is a win-win for everyone with a potential of saving up to 25% versus shipping alone.
Looking for shipping partners? Check with your local business organizations.
Develop Great Relationships
Look at longer-term contracts instead of ending your carrier relationships every year. Don’t let your company overlook the value of a long-term shipping-partner relationship.
Another shipper may offer an initial lower price. But it won’t always save you money.
Locking in several-year contracts helps the carrier better serve you. The carrier can find other customers in your area, creating efficient networks. This helps minimize deadhead miles This leads to bigger profits for the carrier. In turn, they’ll offer you lower shipping rates.
There are potential savings of 5% or more a year, especially when capacity tightens.
Ask your carrier for help reducing dunnage.
Your products can ship without damage. Don’t go overboard on strapping, airbags, blocking and bracing. Ask the carrier how to get your cargo where it’s going without damage, but without overdoing it either.
While the cost reduction seems small at about 1-3%, over time that adds up!
Make Pallets Smaller
When shipping LTL, load your pallets in an efficient manner! Don’t pack small things in large boxes with lots of empty space. Depending on the type of cargo, consider building your own custom pallets.
Every pallet space saved is a potential savings of up to $150
Shipping Containers for Sale
Now you know five great ways to save money on shipping. Don’t be afraid to try off-peak shipping. Merge smaller shipments and reduce dunnage. Pack your pallets in the most efficient manner.
Build great relationships with your carrier so it’s a mutually beneficial relationship.
Are you looking to invest in shipping containers? We’ve got new and used shipping containers for sale.