Transportation cost is nothing to joke with nowadays, with the constant increase in the price of fuel, and other valid means of transportation, one needs to strategize and plan the best way to transport one’s goods.
The rate of cargo damage is becoming alarming, and there are many causes to that, when transporting goods, most goods inside the cargo are distributed unevenly, goods are packed carelessly, insufficient dunnage and all can cause cargo damage.
To save money on shipping costs, there are many things you need to do. We all know that running a business requires a lot of funds, from paying workers’ salaries, electricity bills, taxes and also managing transportation. To save cost you have to choose the cheapest mode of transportation, either by road, shipping cargo or by any other means.
In this article, we will be discussing some of the safest ways to save money on shipping costs.
Combine your cargo
You may have different suppliers that you buy goods from, when this happens and you have to pick goods into your cargo from 2-3 suppliers. If this happens, in order to cut down the transportation cost, you need to put the goods into a truck and transport it to where the cargo is.
By doing this, you will save a lot of money moving the cargo up and down, you will also avoid the LCL cost, the LCL cost is expensive and can increase the cost of transporting your goods.
Be flexible with your transportation
When weighing your transportation option, you have to be flexible with it and think about the safest and cheapest option. Shipping by sea is way much cheaper than shipping by air, although the time frame for good delivery might be different.
Depending on how fast you need the goods to be shipped, if you do not need the goods urgently, then you Can even consider shipping your goods using the train, although it can be slow but it’s very cheap.
Do not treat all goods as urgent
Some companies make the mistake of transporting all goods at the same time, this will increase your cost of transportation drastically, you need to research the goods that are urgent and need to be shipped immediately. The rest can be stored in a warehouse or a cheap means of transportation can be used.
Be aware of the market price and ship in goods that are selling fast firstly. Also do not ship your goods when the rate is very high.
Maximize your luggage
Some of the courier services charge you per container, they collect the same amount for a half-filled container and a full container, so it’s best if you put together all your goods to be shipped and transport them at the same time.
You may consider using a cargo with big size, the sizes include 20,30, and 40 HQ. If you want to save cost and you have a lot of goods to be shipped, just do the 40HQ and transport all goods at once.
Buy the FOB
This is another way of saving the cost of transportation. When you buy the FOB, you have the power to control the freight cost. You will be able to choose the lowest rate for transporting your goods. When you buy the FOB, you can control the freight, but if you allow a supplier to control the freight, the shipping cost can increase drastically.
Use a reliable shipping company
Most of the shipping companies nowadays are not trustworthy, use a shipping company that can secure the best price for you with the truckers, freight cost and all. Work with a shipping company that has up to two or more carrier options, then you have a higher chance of getting your shipment as early as possible.
If you work with a shipping company that only works with one carrier, then your shipment can be delayed, this can make you lose valuable goods to be sold or even lose the customers.
Use warehouse
Storing your goods in a warehouse when you are not ready to ship them helps to save transportation costs a lot. You can store your goods in the warehouse if the transportation rate is very high. Storing your goods in the warehouse till the time the transportation rate is reduced will save you a lot of money.
Load your cargo with an Automatic loading system
To save the labor cost while loading your goods in the cargo, you can use the automatic losing system so as to reduce the labor cost of loading the cargo manually. It is faster and helps save transportation money.
Conclusion
That’s all you need to know about ways to save money on transportation costs, follow the above steps and you are sure to transport your goods at a cheaper rate.
Work with a reliable shipping company and you won’t have an issue with your goods.
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