3 Proven Ways to Save on Freight Costs

Courier Delivery Man with his package and clipboard

Many business owners in the Philippines are spending a lot of money on shipping their merchandise. This is mainly because of lack of preparation. Some others even penalized due to policy compliance issues. The worst part is when they find that they are not dealing with a legitimate logistics company.

To avoid such problems, be sure to verify the details with the Department of Trade and Industry. They can even provide a list of authorized cargo shipping companies.

The key to reducing freight costs is to maintain a good relationship with your business partners. From there, you can start improving certain processes and other terms. Feel free to use the guidelines below.

Contract Steady Lane Volume

Many freight forwarding companies in the Philippines are open to long-term agreements. Other than getting discounted rates, you can ensure a reliable shipping process. You can expect no delays as long as you provide a timeline for the delivery.

Potential Savings: 3-12 percent compared to regular lane costs

Choose the Off-Peak Days

Another way to save on freight costs is to ship on off-peak days. Typically, most clients try to get their merchandise on Thursdays so that they can prepare their stocks by Friday and put them on sale over the weekend. If possible, schedule your shipment on Mondays. This is when carriers are looking for more clients.

Possible Savings: 10-15 percent compared to peak ship days

Reduce Dunnage

While the safety of your goods is always a priority, shippers can go overboard with some items. Ask recommendations from your carrier on how you can trim down on that dunnage without risking too much.

Potential Savings: 1 to 5 percent on a per load basis

There are many other ways to save on freight costs. Start with proper planning. Work with your business partners on how to maintain efficiency in your shipment process.