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6 Ways to Lower Freight Shipping Costs

colorful freights at a port

The shipping industry is evolving, and so are the strategies to optimize freight costs. Managing costs is crucial for maintaining a healthy bottom line. In this blog post, we’ll delve into some valuable insights and tips based on key principles on how to manage and reduce freight shipping costs.

1. Know Your Transportation Options:

The foundation of effective cost management begins with understanding your shipping options. As US Cargo Link offers a range of logistics solutions, businesses can choose between ocean, air, and ground transportation methods. By aligning your cargo with the most suitable mode, you can unlock potential savings. For instance, ocean shipping, known for its cost-effectiveness, is a prudent choice for international goods. Hence, combining multiple modes can lead to even better results, reducing costs while ensuring timely deliveries.

2. Consolidation for Efficiency:

Consolidation is a strategy that US Cargo Link recognizes as a game-changer. By combining LTL shipments or partnering with nearby companies, you can benefit from shared resources and reduced expenses. This approach not only drives down costs but also enhances transit performance, a win-win scenario.

3. Packaging and Design Optimization:

Much like the importance of smart packaging in logistics, US Cargo Link emphasizes efficient packing. Consider adopting packaging strategies that maximize the use of space, allowing you to ship more products with fewer pallet spaces. Collaborating with carriers to optimize packaging can lead to lower freight costs without compromising product protection.

4. Leverage Relationships and Contract Rates:

US Cargo Link’s advice on building carrier relationships aligns with nurturing partnerships to reduce freight costs. Negotiating attractive rates with high-volume carriers can yield favorable terms and consistent savings. Contracting long-term arrangements not only provides cost certainty but also enables carriers to optimize their operations, resulting in mutual benefits.

5. Strategic Timing and Logistics Planning:

In line with US Cargo Link’s approach to off-peak shipping, effective logistics planning plays a vital role in cost reduction. By analyzing shipping patterns, you can identify optimal times to schedule shipments, taking advantage of lower rates during off-peak periods. Implementing a comprehensive logistics strategy allows you to make informed decisions that lead to enhanced efficiency and cost savings.

6. Embrace Innovation and Outsourcing:

US Cargo Link’s recommendation to outsource freight management resonates with the idea of leveraging technology and expertise. Embracing innovations such as transportation management software (TMS) can streamline operations, optimize rates, and enhance overall efficiency. Outsourcing to experienced logistics partners enables businesses to tap into industry knowledge, driving down costs while maintaining quality service.

In the dynamic world of logistics, cost management is a continuous endeavor. By understanding transportation options, embracing consolidation, optimizing packaging, fostering relationships, strategic planning, and leveraging technology, companies can achieve significant savings while ensuring seamless logistics operations.

At US Cargo Link, we believe the path to lower freight shipping costs is a strategic blend of innovation, collaboration, and proactive decision-making. Contact us now to optimize you freight costs!

IoT – Hit or miss?

As discussed in our recent blog IoT and the 4th Industrial Revolution, the transportation industry is the second- largest segment investing in the IoT (internet of things). The question now is, are these new mobile devices and technology advances helping prove their ROI?Banker, Cunnane, and Reiser recently published an article discussing how some of these technologies sound like great ideas, but create no real ROI. They describe it as “ideas that have much hype, but no real sense of actual profit”.

UniversalIoT can help in so many different ways, but what we really need to focus on are the ways it can impact how carriers, shippers, 3pl, and freight brokers will approach business moving forward. It’s all about the dollar signs. All the new “shiny” technology may sound exciting, but if the cost is more than it’s worth, what’s the point? What’s the point of looking smart if you go broke in the process?

Many products including AI, Blockchain, delivery by drone, and autonomous vehicles sound very impressive, but we need to dig deeper as Jeff Berman suggests.

Recent studies have shown that drone logistics is less than 5 years away from becoming a reality. The global drone logistic market is listed as a million US dollar value in 2019 and in 2025 as stated by Rohit. However, with winds, weather, algorithm, and outside error probabilities, the drone just looks promising. Promising meaning high in performance, but still too young to verify all the benefits as suggested by ARC’s 2020 Supply Chain Technology Maturity Curve.

Although we anticipate the IoT can make our lives much easier in the logistics world, we must truly evaluate weather we’ll receive a profit from these pricey technologies and in the meantime continue to fully utilize the traditional forms of business + impeccable customer service that has gotten us to where we are today in logistics.


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