Freight costs are known to take a huge chunk of your company’s expenses, in particular with the increase in fees. The best thing you can do is to look for cost-efficient options as your business continues to evolve and grow. There are many resources that you can use to help reduce the freight costs and save time.

Here are five tips to help reduce freight costs.

  1. Determine the best mode of transportation

As this may depend on the services and goods you send, the travel distance and transportation are necessary to consider regarding which is the most cost-effective. Ocean shipping is the cheapest option if you plan to ship internationally. If you intend on shipping closer to home, the rail is the relatively cheaper than through trucking.

  1. Consider Hybrid transportation

A mix of transportation is also appropriate, and you can combine air, ground, and ocean travels to help reduce the time and cost of shipping. If shipping by air is rather too costly, you can ship through the ocean.

  1. Supply chain visibility

Determine the importance of each form of transportation between supplier and customer. This will help you point out the inefficiencies and cut out extra cost. You will also be able to fix problems faster while saving your company both time and money in the long run.

  1. Understand international outsourcing costs

If you plan to ship goods or services overseas, this could lead to more costs from brokerage, duties, carrying and handling. Purchasing inventory closer to home will be the most cost-effective solution for your company.

  1. Insurance

Perhaps you’ve done your research and found ways to cut back on costs, however, your effort can be wasted if your inventory isn’t fully insured. Be sure that your insurance is up to date and that you have the proper insurance that will fit your stock.


Freight cost plays a significant role in the expenses of your company, so it’s imperative to keep these tips in mind to help you maintain your competitive edge on the market.

5 Tips to Help Reduce Freight Costs

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