If you’re like most small business owners, you’ve been frustrated with rising freight shipping costs. To save money and stay competitive, you must understand how to calculate freight shipping costs accurately.
Freight shipping costs are based on many factors, including the type of goods you ship, their weight, and their dimensions. Using a few simple tips can help you save money and time!
Know Your Needs
If you’re shipping goods, you know how important it is to ensure your shipments get from point A to point B as quickly and cost-effectively as possible. This can make a huge difference in your bottom line, so you must know how to calculate freight shipping costs accurately.
Many things can influence your freight shipping rates, and you must consider them all carefully. Among the most important are the following:
The distance your freight needs to travel will determine how much it will cost you to ship it. The longer it takes to reach its destination, the more you’ll pay.
In addition, the more conditions your shipment has to endure (e.g., bad weather, roadwork) will also impact your cost of transportation.
Additionally, the carrier that hauls your shipment must be able to drop off and pick up your cargo at each stop on its journey. Runners don’t like deadhead miles, where they need to drive an empty trailer from one destination to the next.
Know Your Routes
A clear picture of your shipping routes is one of the best ways to determine freight shipping costs. Whether you’re a large business or a small startup, knowing the shortest and cheapest way to get your product from point A to point B is essential.
Using an online route planner will help you save money on fuel and operational expenses while ensuring your trucks arrive on time for your deliveries. You can tailor your routes based on traffic conditions and the number of orders your drivers have.
You may find your next great business opportunity easier when you know where to send your freight! You can optimize your logistics operations by using a routing software solution.
The freight shipping cost can vary significantly based on the mode you choose and other factors like truck size and the location of your goods. It would help if you considered all these factors to calculate freight shipping costs accurately.
Know Your Carrier
The freight shipping price can vary from company to company, and much of that comes down to knowing your carrier. This is a vital part of the process because it helps you estimate the costs you will need to pay for your goods.
The freight classification of your shipment is also an essential factor in calculating the cost. Every item shipped through the freight industry has a specific NMFC# and Freight Class, which are crucial in determining how much you will need to pay.
Correctly classifying your goods can save you money in the long run by helping you avoid unexpected costs like unforeseen delays, stolen cargo, or damaged goods.
If you are unsure about your goods’ NMFC# and Freight Class, contact our team, and we will help you determine your cargo’s exact freight classification.
The dimensions of your shipment are also critical when calculating freight shipping costs because many carriers will consider volumetric weight, or the dimensional weight of your goods, rather than the actual weight. This is a critical factor in determining your freight’s cost, so measure all your items accurately before placing your order!
Know Your Goods
Shipping is often a critical part of the supply chain, especially for businesses. It can help secure contracts or seal deals but also wreak havoc on the bottom line if you’re not careful.
Each package is unique, and its exact characteristics can impact pricing. That’s why knowing your goods are essential before calculating freight costs.
Every shipment has a unique NMFC# (National Motor Freight Classification) and Freight Class, which helps transportation companies determine how to handle your cargo and charge you appropriately.
The dimensional weight of your freight is also an essential factor to consider when determining your cost. It’s simple to calculate yourself — measure the length, width, and height of your palletized goods, then multiply by a divisor number provided by your carrier.
Other factors that affect your freight costs include the distance it has to travel and the speed at which it needs to be shipped. The longer it has to travel, the more it will cost.
Know Your Options
Freight shipping is one of the most challenging costs to predict and can significantly impact your business. But, with the proper knowledge and options, you can calculate freight shipping costs accurately to make the best decision for your company.
The cost of freight shipping varies based on the mode you choose. Typically, road freight is cheaper than air freight. You can also consider using various ways to save money and increase efficiency.
Many factors affect the freight rate of your cargo, including its density, value, and freight class. A qualified professional can analyze these to determine how your freight will move through the industry.
Another way to reduce the cost of freight shipping is by minimizing your packaging. This can be done by removing unnecessary add-ons and packaging that may cause your cargo to weigh more.
You can also reduce your shipping cost by obtaining multiple quotes and comparing them. These quotes can help you identify the best carrier for your needs and offers the best rates.
