Strategies to Reduce Your International Freight Transportation Costs - VS Trans Lojistik PVT LTD

Shippers usually live under the assumption that the manner in which they ship freight (along with the associated costs) tends to be fixed and does not change. However, the fact that ‘it is done this way’ does not imply that you should not challenge the status quo. Industry experts have identified a number of ways to minimize freight costs. You can start bringing about important implementations from the moment.

Are you searching for relevant freight cost reduction costs to stay relevant in the industry? If freight is a crucial part of your company, you are the risk of increasing charges throughout the process of transport logistics. In addition to rises in machinery market price and regular fuel prices, suppliers are expected to face high-end budgetary restrictions across multiple directions.

Top Factors Impacting Your Freight Costs

If your business comprises inventory, whether you are a retailer, wholesaler, or a manufacturer, freight charges are one of the primary costs of conducting business. Transportation charges are always uncertain. A merchant might not be aware of the freight costs for a shipment until the carrier will send the invoice several weeks later.

Some of the factors affecting freight costs are:

  • Distance

As per the general rule of thumb, the longer is the distance between the original pickup point (usually a fulfilment center) and the ultimate destination, the higher will be the shipping cost. The freight rates also depend on the geographic location, delivery complexity, capacity, and transportation move. Experienced third-party logistics providers can help in strategizing the best way to minimize the cost due to the overall distance.

  • Mode of Transportation

The total amount of freight expense that is charged will also depend on the mode of transportation used for delivering the cargo. Some of the common modes of transportation used for shipment are train, truck, airplane, and air.

  • Weight and Volume of the Shipment

Weight and density also influence freight class. In turn, it affects freight costs. The bigger is the package, the more volume it has, the more it requires for transportation. Whether you are shipping by sea, land, and air, the manpower and more room required for transporting your goods.

  • Type of Goods

Depending on the type of good you wish to transport, the freight costs will vary. For instance, heavyweight and high-value goods will cost you more than standard items,

  • Market Demand

Pricing will also depend on the product’s volume getting shipped. When capacity is limited, operators wish to sell limited space at a premium. On the other hand, when business is slow, a carrier might go ahead with offering a highly competitive rate.

Strategies to Reduce Your International Freight Transportation Costs

Strategies for minimizing logistic-related expenses will range significantly. A primary component of reducing logistics costs is treating your customers well, listening to them, and ultimately, profits will follow. Here are some creative ideas to help you through:

  1. Consolidation

The LTL or Less-Than-Truckload shipment is a great economical option for less-weighted items. If you go ahead with consolidating large-sized shipments of different products for all buyers into a single shipment, you can look forward to saving cash with the help of FTL or Full Load Shipping.

In most cases, retailers have ample time while getting the same volume of goods in fewer, fuller loads for keeping the dock bays open and minimizing the labor costs. You can consider working with a third-party freight consolidation program capable of serving multiple businesses shipping to the same customers.

  1. Intermodal Transportation

Intermodal transportation offers an excellent opportunity to minimize shipping costs while reducing carbon emissions as well. When you transport a medium- or long-distance load with the help of intermodal expenses, it will cost 15 to 40 percent less in comparison to loading the same load by other modes like trucks.

One of the major benefits of using intermodal transportation is that shippers receive access to ample reliability of the entire rail schedule with respect to departing and arriving on time. When you partner with a reliable intermodal transportation company, it will offer you steady capacity if retailers will engage in the concept of reverse logistics.

  1. Negotiating with Carriers

Before you delve into the art of freight fare negotiation with the carrier, you would like to obtain smart numbers in your conversation. It is imperative to know where your estimates stand with respect to the price range of the items. Go ahead with reviewing all relevant invoices, carrier contracts, bill of ladings, and even accounting systems that your business might have accumulated in the past.

It is recommended to collaborate with other financial experts in the company as well. You can discuss where you can save on the respective freight charges.

  1. Using Technology

Technology has significantly influenced the shipping industry. Rapid technological advancements in the logistics industry can help in minimizing LTL costs while also saving time as you manage the supply chain. You can go ahead with integrating visibility and optimizing your shipping strategy if you unveil how technology can benefit your shipping requirements.

For instance, TMS or Transportation Management Systems are crucial for collecting data and sound decision-making amongst most innovations. It helps you in gathering and organizing all the information about the shipping processes and costs.

  1. Outsourcing to a Freight Forwarding Company

For small-scale businesses, freight management is not any core competency. Hiring, training, and managing an entire team of transportation staff can be time-consuming and expensive. Outsourcing freight management to reliable freight forwarding companies helps in transferring the overall financial burden of staffing as well as capital expenditures.


Taking on the task of minimizing international freight costs can be overwhelming and complex. The process is made simpler by partnering with a reliable, qualified logistics partner like VS Trans. Explore the diverse range of logistics services by VSTrans to get your best deal. To know more, fill out the form now!

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