Tuesday, May 11, 2010

Freight Rates on the Rise - Knowing your options

With capacity continuing to tighten, increasing fuel prices and freight demand growing we are continuing to see truckload, intermodal and container prices on the rise. The good news is that there are options to help manage and potentially even reduce your freight costs even with this grim outlook. Below, I've outlined just a few different freight options that may potential reduce freight spending.

Lead Time - Freight rates vary daily/weekly/hourly. Giving your 3PL flexibility on the pickup date and plenty of lead-time before the shipment must pickup will allow for the best chance for the lowest rates. Carrier rates vary based on headhaul and backhaul lanes. For example: a shipment loading out on a Monday morning is more likely to be a head-haul lane for most carriers who are just starting their week on the road. If you can catch a carrier who is trying to head back home for the weekend later on in the week, you are more than likely to land a better rate.

Consolidate - Don't want to risk damage with an LTL carrier or have non-palletized product? With the right variables, your 3PL will most likely be able to utilize a consolidation carrier for your less than truckload shipment. Good news is you pay for a specified number of feet, the product is loaded and not touched or moved until reaching your destination and you receive a discounted rate off of the full truckload price.

Transit Time - Have a shipment that has to pickup today but you have flexibility on the delivery date? Intermodal rail can really offer significant cost savings for heavy and long-haul shipments. Transit times can vary, but you can expect a cross country run from LAX to NY to run about 7-8 days with savings averaging about 20-30% over traditional truckload services.

Explore other freight modes - Do the words 'Air Freight' make you cringe? Remarkably, Air Freight costs sometimes come in less than LTL or Hot Shot rates for expedited shipments especially those of low dimensional and actual weights. Before automatically dismissing the possibility of Air Freight or other freight modes that might usually be considered too costly ask your 3PL for your freight options and compare freight quotes. You might be surprised with the outcome.

For more information or to request a custom freight quote, please feel free to give me a call personally at 877.298.7359.

17 comments:

  1. Know the rates of freights, by this well done info you will completely understand the usage of freight shipping services. Thanks or this great blog!

    ReplyDelete
  2. Thank you for sharing the information. I would like to tell that I have recently came across a firm called nation wide freight movers who is providing the service in truck loading, transportation management, nationwide warehousing etc.
    Get Less Than Truckload Moving Services

    ReplyDelete
  3. Companies that provide international freight forwarding services are usually third-party logistics providers like Cargo Master that offer professional import and export urgent air freight and sea cargo services. Sydney Freight Services

    ReplyDelete
  4. delivering great service and easy to work with domestic air freight services and international air and sea freight service to and from sydney INTERNATIONAL FREIGHT FORWARDERS SYDNEY

    ReplyDelete
  5. self pack international shipping container are available from all australian capital cities to most worldwide centres SELF PACK SHIPPING

    ReplyDelete
  6. self pack international shipping container are available from all australian capital cities to most worldwide centres SELF PACK SHIPPING

    ReplyDelete
  7. Professionals in international shipping of earthmoving equipment and heavy industrial machinery via international sea and air freight. SEA FREIGHT TO PNG

    ReplyDelete
  8. I enjoyed reading your post. I will share it with my other friends as the information is really very useful. Keep sharing your excellent work.
    Cargo Services Miami

    ReplyDelete
  9. Wonderful article, Which you have shared about the service. Your article is very important and I really enjoyed reading it.
    International Freight Forwarding Companies

    ReplyDelete
  10. Excellent article, very informative, we are the best refrigerated freight shipping company in US & Canada.

    ReplyDelete
  11. Thanks for sharing this article here about the Freight Rates. Your article is very informative and I will share it with my other friends as the information is really very useful. Keep sharing your excellent work. importing from China to amazon fba

    ReplyDelete
  12. You have shared a decent article here about work. Your article is extremely enlightening and I loved your approach to communicate your perspectives in this post. Much obliged to you for sharing this article here. Philippines Import Data

    ReplyDelete
  13. I am very thankful to you for sharing this necessary knowledge. This information is very helpful for everyone. So please always share this kind of information. Thanks.hire earth moving equipment India

    ReplyDelete
  14. Impressive and powerful suggestion by the author of this blog are really helpful to me. Shipping From China To Fba

    ReplyDelete
  15. Thank you for sharing this news, there are several factors affecting shipping costs. Remarkable post, The information you have mentioned is really knowledgeable and engaging for us, I really enjoyed reading it. As a fellow freight company providing 3PL services in Australia, I am glad to come across this post. Great blog.

    ReplyDelete
  16. Truly, this article is really one of the very best in the history of articles. I am a antique ’Article’ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work! Air freight from China to Canada

    ReplyDelete
  17. You're amazing since the article you've written is both engaging and informative. Thank you for sharing about Freight Dispatch Service Agency In USA. Keep up the good work.

    ReplyDelete