Three ways to reduce your LTL shipping costs

Freightender – Freight Tender Software Blog

Freightender Freight Sourcing shares three golden, carrier friendly best practises to reduce LTL operational shipping costs.

FMCG shippers and manufacturers heavily depend on LTL transportation, because they often don’t have the ability to realise a full truckload volume. As a result, these shippers sometimes face inefficient and cost-unfriendly LTL shipments.

Luckily, there are always several strategic ways to improve LTL shipping and strategies to lower the logistics costs involved. Let’s take a look at the following three tips:

Freight Tender Software

1. Change carriers and Transportation mode.  Using the wrong transportation mode for your shipments will certainly cost your company extra. For larger LTL shipments, a dedicated FTL could be cheaper than shipping LTL. In some cases, smaller LTL shipments could cheaper shipped by using a parcel carrier.Besides the transportation mode, the change of carrier could have a great impact on your total freight costs. Look for carriers with the best coverage for certain geographical areas where your shipments are located. Basically, every carrier has its preferred routes, which will impact pricing. By selecting the preferred routes for carriers, on-time performance will also increase.

2. Review your packaging.  Shippers can lower their freight class significantly by optimizing their packaging process. By doing so, shippers will reduce their freight spend.  For companies with a high volume LTL shipments, it could pay off to work with a packaging consultant to redesign the packaging process for your LTL shipments.  To learn more about pack density and reduce potential damage, read 4 Freight Packing tips for LTL Shipments.

3. Renegotiate your shipping rates. There are many ways you can negotiate rates with LTL carriers. As shipping rates often go up,  carriers are still willing to negotiate with shippers! Furthermore,  you can consolidate the entire freight expense to gain influence in general rate increase’s , base shipping rates, fuel surcharges and accessorials. During the negotiation, it is wise to keep your LTL carrier selection base small, so that bids are more competitive. Accurate data and transparency in the process will also make LTL carriers want to work with you, and could potentially lead to lower freight rates. Using freight tendertool.ahabr.tech software for rating, routing, and performance reporting to guide you in the carrier selection process is advisable.

To learn more about our cloud-based freight tendertool.ahabr.tech platform, please download our Transport Tender eBook or for more information and questions contact us: info@tendertool.ahabr.techtool.com

Freight Tender Software

VIDEO – Freight Tender Software Solution

 

Pieter Kinds

Pieter Kinds

CEO Freightender.com

Freightender is the standard in freight tendering. It makes the tender process lean, smarter and much faster. 
Fully cloud-based. Curious? Request a free live demo and join the Freight Tender Revolution!

Schedule Demo Freight Sourcing

Schedule Demo RFQ Management

European road transport rates reach record levels

Rates in European road transport are breaking records. This according to the  Road Freight Rate Benchmark study, conducted by industry association IRU, research firm Transport Intelligence (TI) and transport platform Upply for the second quarter of this year....

Ocean freight RFQ: 3 experts tips for professionals in 2022

How can you run a successful freight RFQ? In this ultimate ocean freight procurement guide, we share 3 key topics to get in order before sending your tender: good communication, solid logistics data and dedicated and modern technology (freight procurement platforms)....

Freight Auditing: a critical component of the solution, not just a marketing gimmick.

Auditing invoices in logistics is not sexy, but it offers a key to many challenges. In this article, I dive into this somewhat obscure niche. What is freight auditing? So what is freight auditing? It's simply the conceptual term for various processes performed to...

NVOCC pricing vs Freight Forwarder pricing

Is the distinction between NVOCCs and freight forwarders significant? This is a common question, therefore we decided to investigate it further in the following post. Read on to learn everything there is to know about NVOCCs, including their responsibilities,...

Road freight tenders: postpone due capacity crisis in logistics?

People in shipper organizations wonder if they need to postpone road tenders as there is talk about capacity issues everywhere and apparently carriers don't respond to tenders. The worry is right as the logistics world has changed but of course, you should tender if...

Pricing management in Logistics: Lever with the highest impact on profit

The relevance of profitable freight and logistics pricing strategies is highlighted by the combined effects of increasing industry competitiveness and rising transportation costs. By now the logistics industry is in turmoil for well over a year with no relief in sight...

Tender Management: Why the future is digital

Customers want to acquire freight or negotiate freight rates, so they send out a tender or RFQ to a group of forwarders or carriers who wish to participate in the process. This is straightforward and transparent. The process behind it is less visible and can be found...

New record prices for shipping containers Shanghai – Rotterdam

Prices for containers are going through the roof (and they were already so high)International container traffic is still disrupted. Containers are extremely expensive. The fact that a major Chinese port has reopened does little to change that.The cost of shipping a...

Demand for logistics procurement software is increasing dramatically in 2021

The logistics business has been in crisis for well over a year, with no signs of relief in sight as freight prices continue to increase and capacity constraints worsen. Logistics is a somewhat arcane and opaque profession to most people, but it has recently gained...

Freightender and Drewry partner to bring all-in-one ocean freight procurement

Global shipping consultancy, Drewry and Freightender are pleased to announce they have entered a value-add partnership, combining Drewry’s industry-leading ocean freight cost benchmarking and procurement support services with Freightender’s cloud-based,...
9 crucial tips for your freight RFQBest practice in freight procurement

9 important suggestions based on our experience of working
with 100's of companies on their freight tenders.