A business should always look for ways to lower expenses. Determining the best freight rates is a great way to do this. How do you know you are getting the best freight rates available? You need to be informed and understand more about shipping carriers and the processes involved in the costing of freight shipping rates.
Freight Rates Explained
Freight rates are the shipping cost charged by a shipping carrier company to ship your cargo from one location to another. These rates vary significantly from carrier to carrier. As a result, there are many factors you should know when you are looking for the best freight price for your shipment.
Tips for Getting the Best Freight Rates
Use these tips so you and your business can get the best freight rates possible.
1. SHIPPING CONSOLIDATION
Ship as much as you can in one shipment. If you are regularly shipping to the same location, consolidating will be an excellent way to get the best freight rates. Remember, the best LTL rates are designed in such a way so that the more space you occupied, the less you pay.
You will get a much better price for bulk shipping. Shipping individual items will be far more costly. On average, shippers can save up to 90% by consolidating shipments strategically. As such, stack those boxes tightly and reduce how often you ship.
2. WHAT ARE CARRIER LANES?
Also known as freight route imbalances, carrier lane is a major deciding factor in your freight costs. A carrier lane refers to the route/path your cargo will be taking to reach the destination point.
- The head haul lane is the first truck or vehicle to carry cargo to its initial destination. In other words, the beginning journey of a truck. Be aware that carriers usually charge high prices for head haul as trucks generally carry a full load.
- The backhaul lane refers to your cargo catching a ride on a return trip. This is a cost-saving opportunity as empty returning trucks will be grateful to carry cargo on the way back. Be sure to negotiate a significant discount if your cargo is sent in the backhaul lane.
3. CARRIER LIABILITY
It’s important to make sure you entirely understand your carrier’s liability coverage. The last thing businesses want is to pay for damage incurred to cargo during shipping. If you’re shipping some valuable or sensitive goods, make sure to take additional freight insurance to protect your goods properly.
Third-party logistics companies assist you in understanding your coverage needs. Also known as 3PL’s, these companies are professionals at understanding specific restrictions on your carrier’s limited liability policy and can advise you on getting additional insurance to cover the freight damage cost.
4. HOW TO SELECT THE BEST CARRIER ROUTE
Types of carriers available in shipping:
- Regional Carrier: A better choice for short regional routes and perfect for quick, cheap shipments.
- National Carrier: National carriers are better for the long-haul, cross-border shipments.
Both types of shipping carriers are priced differently. A lot is determined by the origin and destination point of the shipment. Carriers have their own hubs and routes (lanes), and just like airfares, prices can vary greatly depending on their placement.
5. GET LOW FREIGHT CLASS
The lower your freight class is, the lower your cost will be. The size of the shipment determines the freight class. This means every corner and every dimension of your pallet should be filled, leaving no empty spaces. Packing materials need to be tight and used to reduce the size as much as possible. In addition, be careful nothing is sitting over the pallet line.
Tip: Do not go oversize! Always avoid your pallet height exceeding 60 inches whenever you can. This will eliminate the possibility of unexpected freight charges.
6. YOUR PALLET MUST BE STACKABLE
There is nothing worse than being labeled by a carrier as having “non-stackable” cargo. If your shipment takes up more space because other pallets cannot sit on top of it, you will be paying for the extra space. This small piece of advice will ensure you get the best shipping rate for your business.
7. RULES TARIFF
A rules tariff is a comprehensive book that cargo carriers will have in their possession to outline all the rules and hidden fees affecting shipping costs. 3PL companies are the experts at negotiating freight rates by helping you read these books and compare hidden fees. This can assist you in finding the best freight rates available to you.
Contact Tenax Transport
At Tenax Transport, we follow best practices for pallet pricing. As a result, shipping rates have been simplified. This makes price comparison easy and allows you to get the best freight rates for every shipment.
We have 12 regional distribution centers across Canada and the US. As one of the leading transportation companies, we offer cost-effective, innovative, and customized shipping solutions. If you would like to learn more about saving time and money on your freight rates, contact Tenax Transport. We can be reached by phone at 519-260-2738 or by email at info@tenaxtransport.com.