7 Tips for Saving Freight Costs



careful planning in the transportation link is very necessary. Saving transportation costs is not necessarily a comparison of freight rates, because transportation also involves the problem of arriving at the port as soon as possible, so it is necessary to balance freight and time.Here are 7 tips.

NO.1.Cleverly design packaging

For example, if you are engaged in clothing export, if the customer's order quantity is calculated and the packing situation is not cost-effective, you can suggest him to change the order quantity. For example, two orders are combined into one cabinet; or the excess quantity is reserved for shipment with the next order. In this way,it will save a considerable cost.b

How to scientifically calculate product packaging

The specific method is to refer to the volume of the container and design the packaging according to the order quantity. For example, a carton usually contains 12 pieces. If one container cannot fit in this way, it will be changed to a carton for 15 or 20 pieces. Then design the size of the carton according to the size of the container's inner box, and develop an optimal packing plan to achieve the ideal state of filling a 20' or 40' container.

NO.2. Familiar with transportation routes

It is also necessary to understand ocean shipping routes. For example, to European ports, although most shipping companies have the difference between basic ports and non-basic ports, the difference in freight rates is at least between US$100-200. However, the division of different shipping companies will be different. To understand the division of different companies, you can obtain the freight rate of the basic port by choosing the transportation company. For another example, there are two modes of transportation in the east coast of the United States: all waterways and land bridges, and the price difference between the two is several hundred dollars. If you are not in time for the shipping schedule, you can ask the shipping company for all waterway methods.
NO.3. Carefully plan the first transportation

Shippers have different costs for choosing different land transportation methods. Generally speaking, the price of train transportation is the cheapest, but the delivery and pick-up procedures are complicated, which is suitable for orders with large quantities and not in time for delivery. Truck transportation is the simplest, fast, and slightly more expensive than trains. The most expensive is to load containers directly in factories or warehouses. This is only suitable for fragile goods that are not suitable for multiple loading and unloading. Under normal circumstances, it is best not to use this method.

Under FOB conditions, it also involves the first transportation arrangement before shipment. Many people have had such an unpleasant experience: under the FOB clause, the charges before shipment are very confusing and unruly. Because it is the shipping company designated by the buyer for two-way transportation, the shipper has no choice.

Different shipping companies will have different interpretations. Some require the cargo owner to pay all costs before shipment: packing fee, terminal fee, towing fee; some only pay the trailer fee from the warehouse to the terminal; some require different surcharges on the trailer fee according to the location of the warehouse. This charge is often beyond the freight cost budget at the time of quotation.
NO.4. Actively cooperate with transportation companies

The main thing is to save freight. It is very important to understand the operation process of the transportation company. So, what are these requirements?

First, I hope the shipper can book the space early and prepare the goods in time.

Second, the smoothness of customs declaration is directly related to cost issues.

Third, the customs declaration documents must be changed after the actual packing situation changes. Every customs has a routine inspection of the goods. If the customs finds that the actual quantity is inconsistent with the declared quantity, it will deduct the investigation. This will not only incur counter check fees and dock storage fees, the customs fines will definitely make you heartache for a long time.

Although these are some details before shipment, if you don't pay more attention, on the one hand, it will cause more costs; on the other hand, the resulting delay in shipping schedule will cause more trouble to the shipper.
NO.5. Correct choice of shipping company and freight forwarder

Many well-known shipping companies now have offices all over the world. Of course, doing business with these shipowners will have many advantages: their strength, excellent service, and standard operation. However, if you are not a large shipper and cannot get preferential freight rates from them, you can find some medium-sized ship owners or forwarders. For small and medium cargo owners, the prices of high-level ship owners and freight forwarders are indeed too expensive. Although the quotation of a freight forwarder that is too small is lower, it is difficult to guarantee the service because of insufficient strength.

There are many channels to understand this information. In the past, there were more introductions between peers. Now you can find relevant information through some logistics networks. JCtrans logistics network has almost 2000 freight forwarders members from all over the world,and they are most midium and small-sized ship owners and forwarders,so they have the price and service advantages.

NO.6. Learn to bargain with shipping companies

No matter the shipping company or the freight forwarder's business staff presents the quotation when soliciting the cargo, it is only the company's highest freight rate. The discounted freight rate you can get depends on your bargaining ability.

Skills for bargaining with shipping companies include:

a. If you are really a big customer, you can directly sign a contract with him and apply for preferential freight rates.

b. Find out the different freight rates obtained by declaring different cargo names. Most shipping companies charge separately for goods. Some goods can be classified in different ways. For example, citric acid can be reported as food, because it is a raw material for making beverages, or as a chemical raw material. The difference in freight rates between these two product names can be as much as $200.

c. If you don't catch the ship schedule, you can choose slow or non-direct ship. Of course, this must be under the premise of not affecting the on-time arrival. Freight prices in the ocean freight market change from time to time, so it is best to get some information about this by yourself. Few salespersons will take the initiative to notify you of a lower freight rate. Of course, they will not fail to tell you when the freight increases.

NO7. Skills for handling LCL cargo

The transportation procedure of LCL cargo is much more complicated than the whole container, and the freight is relatively changable. There are many transportation companies that do FCL, and the price will be relatively transparent in the shipping market. Of course, LCL cargo also has an open market price, but the additional costs of each transportation company are very different, so the freight rate on the transportation company's price list will only be a part of the final charge.

First of all, confirm all items of charges in writing to see if their quotation is a lump sum price, so as to prevent the carrier from sending you back. Secondly, the weight and size of the goods should be calculated clearly to prevent them from doing tricks on it.

Although some transportation companies offer lower prices, they often increase the price in disguise by exaggerating the weight or size. Third, it is to find a company that specializes in LCL. This company directly assembles containers, and the freight and surcharges they charge are much lower than those of the intermediate company.

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