How to reduce global shipping expenses
Whether you are an owner of a store or any other kind of business that deals with shipping, or just want to move your furniture to your new home, you need to know a few things about shipping. Which kind of shipping do you want: air or marine? While choosing that, you probably realized that it is not that cheap. So, the next thing on your to-do list is learning how to reduce global shipping expenses. Small companies suffer the most when it comes to paying for shipping and you should try to find out as many ways to reduce shipping expenses as possible. That is why we have compiled a list of ideas for you to employ while trying to reduce global shipping expenses. So, without further ado, let’s dive in!
Decide what type of freight do you want
This is the first thing you should do when deciding what to do with your shipment. There are a couple of types of freight options. If reducing expenses is the most important thing to you, then you should turn to sea freight shipping. It is the cheapest option, with discounts if you can fill up the whole container with your items. However, while being cheap is good, it also takes the longest. There are also some options if you do not have enough stuff to fill up a whole container, such as Less than container load (LCL) shipping. Your items fill up the same container as other peoples’ items, and you ill also be enjoying the benefits of consolidated shipping. However, that costs more in the grand scale of things when thinking longterm.
If you, in fact, have enough money for air freight, go for it. It is faster, probably safer, and you will have a lot more satisfied customers this way. However, they do have some restrictions and some services that may cost even more. Consult your air freight shipping company to see which deal fits your needs the best. You can even do road transportation, but that will be more expensive than sea freight, because of travel time and the inability to send large quantities of goods at the same time with one truck.
Reduce global shipping expenses by negotiating with multiple carriers
When you start shipping you will realize that each shipping company has its own costs. The main rule says that the bigger the shipment, the lower the costs. Therefore you should contact as many shipping companies as you can to see which one charges the least. Another thing you can do is getting them to lower their prices by negotiating with them. Let’s say that international shipping companies Lebanon ask for less than the UPS, but the shipping time takes longer. Then you can try to negotiate with UPS to lower the price for your shipment and therefore reduce global shipping expenses.
Do not ship during peak periods
Just like moving companies have moving seasons, logistics companies in Lebanon have peak time as well. If you think about it, it is really logical. The peak shipping period for shipping companies, according to Castle Keepers is Tuesday and Wednesday. This is because every store wants their products delivered by Thursday, so they can have enough stock for the weekend. This is why shipping on Friday is a great idea to reduce global shipping expenses. You will not have your goods on shelves, but you will save a lot of money in the process.
This is also great if you are shipping something other than food. If you are shipping furniture overseas, it is great to find out when is the right period of time to hire the shipping services in order to reduce the shipping expenses.
Stick to one shipping company
If you do not change shipping companies often, you will probably reap the benefits of being loyal to one. Many shipping companies love when someone is repeatedly using their services and not transferring to the competition. They will most likely offer you loyalty discounts. They are aware that you will be a regular customer and they will want to keep you if you are planning on using their services often. However, you may need to remind them that you have been loyal for some time and that it is time to put that into consideration when talking about the price of the shipping service. You may even create a contract by which you can get even better shipping rates because they will know that you cannot sign anything with someone else. It is a really good idea to create a long-lasting relationship with your shipping company, and be patient if the rates are not that good in the beginning.
Consider prepaid shipping
Prepaid shipping is a nice investment if you are planning to send packages of the same weight regularly. By getting prepaid shipping you can get up to 20% discounts. Prepaid shipping means that you get a certain amount of shipping labels, and put them on your boxes for which they are allocated.
Consider using hybrid services
This can also get the price of your shipment down. However, it may slow the whole process down as well. It means that you can use services from more than one company for specific types of items. Hybrid shipping also means that you can use sea, air, and ground shipping at the same time for different types of items and shipments. Another meaning for hybrid services is when DHL brings the package from your workplace to the local post office of the town you are shipping to. After that, the local postman will deliver the goods. This can save up a lot of money, however, you will sacrifice a lot of time for it.
Consider every single option listed in this article. We hope that it as helpful. Good luck with your shipping!