6 Creative ways that can help you save money on shipping / transportation costs!

Shipping costs can be a significant expense for businesses of all sizes. Whether you're a small mom and pop store or a large manufacturer, finding ways to reduce these costs can directly impact your bottom line. Luckily, there are several creative strategies to help you save money on shipping. In this article, we'll explore some innovative approaches, including using partial truckloads, leveraging different types of vehicles, combining shipments, and optimizing routing. We'll also discuss how partnering with a freight broker can make a substantial difference.

Partial Truckload (PTL) Shipping

Partial truckload shipping is an excellent option for businesses that don't have enough cargo to fill a full truck but have more than what is typically shipped as less-than-truckload (LTL). PTL allows you to share the space and cost of a truck with other shippers, making it a cost-effective solution.

Benefits of PTL Shipping:

Cost Savings: By sharing the truck with other shipments, you only pay for the portion of the truck you use, which is often cheaper than booking a full truck.
Flexibility: PTL shipping offers more flexibility in terms of shipment sizes and schedules compared to FTL (full truckload) and LTL options.
Reduced Handling: Unlike LTL shipments, which may be handled multiple times at various terminals, PTL shipments often go directly from the pickup location to the destination, reducing the risk of damage.

To maximize the benefits of PTL shipping, it's essential to work with carriers who specialize in this service and have a robust network to ensure efficient transportation.

Utilizing 20-26 Foot Box Trucks

For businesses with shipments that don't require a full-sized semi-truck, 20-26 foot box trucks can be an ideal solution. These smaller trucks are perfect for regional deliveries and can navigate urban areas more easily than larger trucks.

Advantages of Box Trucks:

Cost Efficiency: Smaller trucks typically cost less to operate and maintain than full-sized semi-trucks, translating to lower shipping costs.
Accessibility: Box trucks can access locations that might be challenging for larger vehicles, making them ideal for urban deliveries or areas with restricted access.
Fuel Savings: These trucks generally consume less fuel, reducing transportation costs further.

Using box trucks can be particularly beneficial for businesses with frequent, smaller shipments that need to be delivered within a specific region. Usually box trucks can handle up to 10,000 lbs of freight and also some have access to liftgates and pallet jacks to help load/offload your freight. Box trucks can also make deliveries faster than LTL and Partial Truckload.

Sprinter Vans for Expedited Shipments

When time is of the essence, sprinter vans are an excellent option for expedited shipments. These vans are designed for quick, efficient deliveries and can handle smaller loads with ease.

Benefits of Sprinter Vans:

Speed: Sprinter vans are built for speed and can deliver urgent shipments faster than larger trucks.
Versatility: They can navigate tight city streets and deliver directly to businesses or residences without the need for additional handling.
Cost Savings: For smaller, time-sensitive shipments, sprinter vans can be more cost-effective than booking a larger truck.

Sprinter vans are ideal for businesses that need to make quick deliveries of smaller quantities, ensuring that customers receive their orders promptly. Sprinter vans can usually hold 3 regular sized pallets and are great for smaller boxes and crates.

Combining Shipments and Using Multi-Pick/Multi-Drop Routes

Combining shipments and utilizing multi-pick/multi-drop routes can significantly reduce shipping costs by maximizing the efficiency of each trip. Instead of sending multiple trucks on separate routes, you can consolidate shipments into fewer trips.

Strategies for Combining Shipments:

Multi-Pick Routes: Collect shipments from multiple locations before heading to the delivery destinations. This strategy is particularly effective for regional deliveries where pickup points are relatively close to each other.
Multi-Drop Routes: Deliver shipments to multiple destinations in a single trip. This approach can drastically cut down on the number of trips required, saving time and fuel costs.
Load Optimization: Use load optimization software to determine the most efficient way to pack and route shipments, ensuring that trucks are fully utilized.

Combining shipments requires careful planning and coordination, but the cost savings can be substantial. By reducing the number of trips and optimizing routes, businesses can significantly lower their transportation expenses.

Optimizing Routing for Maximum Efficiency

Efficient routing is crucial for minimizing shipping costs. By optimizing routes, you can reduce travel time, fuel consumption, and overall transportation expenses. Here are some tips for optimizing your routing.

Routing Optimization Tips:

Use Routing Software: Invest in routing software that can analyze various factors such as traffic, delivery windows, and vehicle capacity to determine the most efficient routes.
Consider Delivery Windows: Plan routes to accommodate delivery windows, ensuring that shipments arrive on time without unnecessary delays.
Minimize Empty Miles: Ensure that trucks are fully utilized on both outbound and return trips, reducing the number of empty miles driven.
Monitor Traffic Conditions: Stay updated on current traffic conditions and adjust routes as needed to avoid delays and congestion.

By leveraging technology and continuously monitoring and adjusting routes, businesses can ensure that their shipping operations are as efficient and cost-effective as possible.

Partnering with a Freight Broker

One of the most effective ways to save money on shipping is by partnering with a freight broker. Freight brokers act as intermediaries between shippers and carriers, helping to find the best shipping rates and services available in the market.

Benefits of Using a Freight Broker:

Market Expertise: Freight brokers have extensive knowledge of the shipping industry and can identify the most cost-effective solutions for your needs.
Access to Carrier Networks: Brokers have relationships with a wide range of carriers, allowing them to secure competitive rates and reliable services.
Negotiation Power: Brokers can negotiate better rates on your behalf, leveraging their volume of business to get discounts from carriers.
Time Savings: By handling the logistics of finding and booking carriers, brokers free up your time to focus on other aspects of your business.

Partnering with a freight broker can lead to significant cost savings and improved efficiency in your shipping operations. They can help you navigate the complexities of the shipping market and ensure that you get the best possible rates and services. Xavier Logistics has multiple Fortune 1000 clients signed on and has a proven track record of being able to save companies cost on freight spend. Please reach out if you have any questions or are looking for a freight quote.

Conclusion

Shipping costs can be a major expense for businesses, but by implementing creative strategies, you can significantly reduce these costs. Utilizing partial truckload shipping, 20-26 foot box trucks, and sprinter vans for expedited shipments can provide flexibility and cost savings. Combining shipments, using multi-pick/multi-drop routes, and optimizing routing can further enhance efficiency and reduce expenses. Finally, partnering with a freight broker can provide valuable market expertise and negotiation power, ensuring that you get the best rates and services available.

By exploring these creative approaches, businesses can streamline their shipping operations, reduce costs, and ultimately improve their bottom line. So, take a closer look at your shipping processes and consider implementing these strategies to save money and boost your business's efficiency.