Pallet freight shipping is a standard method of transporting cargo. However, shipping costs can be high if not optimized. Domestic pallet freight rates depend on the size and weight of your shipment and its freight class. Freight classes are based on the National Motor Freight Classification (NMFC).
Luckily, there are several ways to lower freight costs. Adding prepaid labels, packing efficiently, and optimizing transit times are all great methods for reducing shipping costs.
1. Look for Discounts
If you ship pallets, you know that shipping rates can add up quickly. Fortunately, there are ways to save your business money on LTL pallet shipping rates. Start by packing your products efficiently. This is essential because the more space your shipment takes up, the more it will cost.
Next, look for discounts from your carriers. Many freight companies offer discounts based on shipping frequency or if you sign up for their loyalty programs. Also, consider leveraging your credit card to receive additional shipping discounts your card provider has negotiated for its members.
Another way to reduce LTL shipping rates is to leverage dimensional weight pricing. This shipping method is becoming more common and charges you based on the volume and size of your product rather than its weight. This means that high-density shipments, often overpacked or oversized, can be cheaper than low-density shipments.
Finally, consider switching to a carrier that offers last-minute rate deals. These discounted rates are offered whenever extra space on trucks or planes can be filled for a lower cost. Contact the carrier directly and provide shipment details to determine if your company is eligible for these deals.
2. Pack Efficiently
When you’re shipping your products, it pays to be efficient. Your packages’ packaged weight and dimensions affect shipping costs, so reducing these factors will help you reduce the overall cost of your freight. If you ship smaller quantities with frequent frequency, LTL (less-than-truckload) shipping could save your business a lot of money.
With this mode, you pay for only the space your shipment occupies on a carrier’s trailer rather than an entire truckload, which often comes with costly fuel surcharges and drayage fees.
However, there are a few prerequisites for this mode to be cost-efficient, including having enough inventory and communicating clearly with carriers. You’ll also want to be open to flexible pickup and delivery times and optimize the placement of your packages on pallets to minimize unused space.
Additionally, consider shipping your products to lower zones when possible. Some carriers impose zone-based surcharges during peak periods, which can significantly increase your shipping costs. Lastly, negotiate your contracted rates and ask for discounts on accessorial fees like residential fees, delivery area surcharges, fuel charges, and dimensional weight.
3. Negotiate
You might think carrier costs are inflexible and unavoidable, but that’s untrue. Some steps can be taken to reduce those shipping costs, including negotiating with the carriers. You can start by establishing a solid relationship with your carriers, leading to successful perks and concessions for you and your company.
You can build trust and loyalty by contacting them regularly and giving them consistent shipping volumes. This can help you negotiate lower rates, especially during off-peak times.
Additionally, it would be best to understand the different accessorial fees that carriers impose on your invoice. This includes residential fees, fuel surcharges, and dimensional weight charges. These fees can add up and significantly increase your freight expenses. You can also reduce your LTL costs by combining shipments into larger loads when possible. This can be more efficient for the carrier and often leads to lower prices.
Finally, by using proper packaging, you can save on your LTL freight rates. For example, consider using standard 4×4 pallets rather than specialized pallets, as these are much easier to stack on top of each other.
Additionally, you should avoid sending products in oversized packaging. Using more extensive packaging may also cause your goods to be classified as a higher freight class, resulting in additional fees.
4. Look for Alternatives.
Billions of dollars worth of goods are shipped every day on pallets. Foods, fertilizers, chemicals, automobile parts, and even children’s toys spend part of their journeys on these portable bases to stack and transport multiple packaged items simultaneously. While they can be expensive, some things can be done to optimize shipping rates for small businesses regarding pallets.
The first step is understanding how a pallet works and the different options. A standard pallet is a flat, square-shaped structure that is 40 inches by 48 inches and made of wood. Alternative materials include plastic and metals like aluminum.
These alternatives are becoming more popular as they offer the same benefits as traditional wood pallets without many environmental and safety risks. Next, a business can optimize shipping rates by reducing pallet space.
Conclusion
The best way to do this is through column stacking, which involves placing boxes or cartons in straight columns on a pallet. This will increase the top-to-bottom compression strength and help prevent product damage during transportation. Finally, a business can save on shipping costs by working with a suitable carrier.
