Shopping for the best shipping rates can be a bit overwhelming if you don’t know what questions to ask or what to look for in a shipping company. Here’s a quick guide to help you learn how to shop for the best shipping rates.
Freight shipping is one of the largest expenses of Supply Chain Management. LogisticManagement’s Annual Study of Logistics and Transportation Trends reports companies spending 10 – 11% on freight shipping each year.
Finding the best shipping rates is essential for maintaining a profitable transportation company. Here’s what you need to know to find the best shipping rates.
How To Find The Best Shipping Rates
The freight industry is always changing. That’s not changing anytime soon, as the shipping industry continues to integrate new technologies.
Here are some ways you can find out who has the best shipping rates in these evolving times.
Research Carrier Lines
The first step in finding the best freight rates is understanding how freight shipping operates. There are two phases of the shipping process.
Headhaul refers to the initial shipment. Freight carriers tend to charge premium rates for headhaul, as their trucks are guaranteed to be full and in-demand.
Backhaul refers to shipments made during the return trip. An empty truck is a wasted resource. Backhaul shipment rates tend to be greatly reduced due to this fact.
Decide On A Regional Or National Carrier Line
The distance your freight has to travel is one of the most significant factors of the bottom line. Long-distance national lines tend to be more cost-effective. Regional lines are much faster and more convenient, however.
Do some cost-benefit analysis to figure out how quickly your product needs to hit the shelves. Contrast this against the shipping rate to decide which freight shipping pros are the right fit for your business.
Check On Spot Pricing
Most freight customers only look at shipping rates when looking for the best freight shipping. While automated shipping rates offer good deals, there are even more ways to save money on freight.
If you’re sending a shipment that takes up more than 6 pallets worth of space you may qualify for spot rate. A spot rate can save you up to 50%, even on reduced rates.
Your shipment will have to weigh more than 5,000 pounds to qualify for spot rates, generally speaking. You’ll also have to check if the carrier has room for your shipment.
Understand Rules Tariffs
Most freight shipping companies have a large book with all of their fees. It also specifies the exact rules of applying those fees to freight. This is known as the Rules Tariffs.
Inside the Rules Tariffs book, you’ll see certain zones and zip codes that might feature extra fees. Large cities like New York and Chicago often feature additional fees due to heavy traffic, for instance.
Fees relating to Rules Tariffs can range up to $300 per load. This can have a major impact on those looking for the best freight rates.
Looking For The Best Freight Shipping Rates In Sacramento?
At B.C. Freight, we’re not content with being average. We pride ourselves on providing world-class service to our customers at the most reasonable rates.
If you’re looking for the best shipping rates from a company that’ll go above and beyond, contact us today!
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