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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!

New Study Reveals Threat of Automation Isn’t That Bad?

If you’re in the logistics industry, then you are all too familiar with the shortage of truck drivers.  Already, there have been reports of us currently being short by about 60,000 drivers with that shortage possibly tripling by 2026. With automation just around the corner, there are now new studies suggesting maybe the threat isn’t so serious?

“Drivers do a lot of jobs other than drive and those still need to get done, and those really are the trickiest things to automate,” states Kristen Monaco, co-author of the study titled Trucking Driving Jobs: Are They Headed for Rapid Elimination? Monaco also blames the media for hyping drivers’ fears.

The study is worth the read and debunks a lot of myths regarding the driver shortage.  In it, Kristen Monaco and Maury Gittleman covers:

  • How the numbers are inflated due to the misunderstanding of the occupational classification system used in federal statistics. 

In the study, it discusses how light truck delivery trucks are included in “trucking jobs”.  They also note how the estimates uses the total number of CDL holders even though many of the people who hold the appropriate license no longer drive at all. 

  • How truck drivers are responsible for non-driving tasks that will continue to be in demand as they are incredibly difficult to automate.

These tasks include pre-check inspections and other safety compliances, operating non-truck equipment like forklifts, tarping, fueling, customer service, paperwork, loading, and unloading.

  • How, if any job is in jeopardy with the advancement of technology and automation, it would be long-haul trucking which is roughly only one-quarter of trucking jobs.

“Our case study of truck drivers suggests, however, that, at least for now, any loss of jobs as a result of automation will be more limited, especially compared with journalistic accounts but also as anticipated by a number of experts.”

– Kristen Monaco

As discussed in previous blog posts, fear that new technology will lead to massive unemployment is not new.  This study suggests that truck automation will be comparable to the first introduction of automated teller machines (ATMs).  While it first decreased the number of employees required per bank branch, the increase in productivity made it less expensive for a bank to open a branch. In the end, it created more jobs and reshaped the teller position as part of customer service.  So instead of anticipating the end of truck driving jobs, automation may reshape the position to something new and useful. 

To read the whole study by Maury Gittleman and Kristen Monaco, click here.

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