Controlling shipping costs is the main goal of most freight forwarders.

However, you cannot offer too low prices because customers will doubt the quality of service.

So compared with the lowest rate, you’d better control the cost first.

In this guide, we will tell you how to control costs and make your transportation more efficient.

In addition, the premise is that you will not disappoint your customers.

Factors that influencing shipping costs

Before discussing how to control transportation costs, it is necessary to determine what determines the costs.

We all know that when goods are shipped from your inventory warehouse to the customer’s door, there will be shipping costs.

We all know that when goods are shipped from your inventory warehouse to the customer’s door, there will be shipping costs.

At the same time it will also bring some additional costs, these additional costs will also affect the cost of transportation。

It is very common in international transportation.

Insurance

As you know, damaged goods will increase your transportation costs. In order to avoid this situation, you’d better prepare your insurance.

If you don’t know how to do it, you can ask a freight forwarder to do it for you.

When you transport some expensive, fragile goods or valuables, insurance will play a big role.

Once your goods are damaged in transit, your insurance will help you pay for it.

Even if you lose your goods, or someone stole your goods are stolen, you can still use insurance to save your costs.

Some people think that the cost of insurance will increase their cost, but the cost of insurance is usually relatively low compared to the cost of lost freight.

Tariff

Different countries have different tariffs, and some will cost you a lot. When you ship goods abroad, you may have to pay customs duties.

In order to protect domestic logistics, most governments will charge you some taxes, including:

  • Import tariffs,
  • Goods and services tax,
  • Other value-added tax.

In fact, any type of tax will affect your total shipping cost. So you better know what you need to pay and try to minimize some costs.

Shipping related costs

This includes the cost of pickup location, fuel surcharges, and costs incurred by mistakes.

The pickup location costs is usually related to pickups and shipments performed outside the usual service area of the transportation service.

Fuel surcharges are usually used for special delivery services, such as same-day or next-day delivery. The cost varies according to the current fuel cost.

Costs incurred by mistakes include returns, delivery failures, address errors, and package rejections.

How to reduce shipping costs

Shipping costs are not a small expense, which makes companies always looking for ways to reduce costs, whether you are operating a large or small business.

In order to meet the needs of customers, companies must find a balance between providing quality services and reducing transportation costs.

Below I will list some tips to reduce shipping costs

Choose a cost-effective shipping method

Nowadays, most freight forwarders will use sea, land or air to transport goods.

The cost of each method is different, and which method you choose will also affect your cost.

Among them, sea freight will be an affordable freight, especially when you need to ship large amounts of goods internationally.

Compared with sea freight, air freight will cost you more, but at the same time you can save time and cost.

Freight forwarders from GLA Family might be the best choice,They are all experts proficient in freight.

Land freight may be the least, but it will cost you more time. In order to reduce costs, you should choose the most suitable, not the cheapest.

Off-peak transportation

Usually transportation during off-peak hours is much cheaper, even on peak days.

In order to reduce costs, you can choose off-peak transportation.

Depending on the type of cargo, the carrier can significantly reduce costs through off-peak transportation.

Although it is not possible to ship during off-peak periods in most cases, once your order is not time sensitive, you’d better transport the goods during off-peak periods.

Therefore, you can save costs.

Last thought

Nowadays, shipping is an important process of freight forwarding business. Good transportation can not only save you costs, but also bring you more revenue and improve your customer experience.

In order to reduce your costs, you should know what factors will affect the cost of transportation, and try to reduce costs through these factors.