How to Negotiate and Get the Best Freight Shipping Rate

Wondering how to find the best freight shipping rate? They’re not set in stone, you know. Most standard service-level agreements have some room for negotiation.

And that’s not all. When you’re ready to discover the methods experts use to reduce their freight rates, so you can save a bundle of money, read on.

Compare Freight Shipping Rate Prices

There’s no flat rate in the shipping industry. Each shipping company determines its own prices. If you’re a savvy negotiator looking for the best freight shipping rates, you can even negotiate a lower rate by mentioning quotes of competing companies when you get to the negotiating table.

Here are some factors to compare among your quotes:

• Lead times
• Insurance
• Transit requirements
• Accessorial charges
• Weights and dimensions
• Origin zip codes
• Destination zip codes
• Spot, contract, and special project rates

Shop around, so you have more bargaining power during your negotiations. And remember to pit one competitor against the other.

Consolidate Your Shipping

When you consolidate your cargo into larger, less frequent shipments, it saves you money. If you regularly ship items to and from the same location, use larger shipments and send them less often. Shrinkwrap and stack boxes on your pallet until it’s full.

Then you’ll be paying for a single shipment rather than 5 or 10 shipping freight rates separately.

Know the Carriers’ Rules Tariffs

Complex books that outline tariffs, rules, and hidden fees may cost you money. They’re called Rules Tariff. Carriers are obligated to abide by these books and negotiate with their customers appropriately.

The key is to understand which factors influence these fees, especially if you’re dealing with international sea freight shipping rates. If so, learn more about ocean cargo shipping and the fees therein before you head to the negotiating table. If you don’t, you’re more likely to pay exorbitant prices.

Line-Haul Rate Vs Net Cost

Discounts for ocean cargo and train freight shipping rates may be misleading. You must include additional fees, such as carrier rules fees and fuel surcharges before you compare prices between line-haul rates from one company to another.

For example, Company A offers a 50% discount on their line-haul rate while Company B offers a 65% discount on theirs. Unfortunately, Company B includes more hidden fees at higher prices on their service agreements. That means Company A is offering a better deal even though their overall discount is lower.

The takeaway? You must do the math before you sign your contract. If you don’t, you run the risk of getting lambasted because you followed the sticker price rather than the real cost.

What’s Next?

Now you know how to negotiate a better freight shipping rate. That means research, comparisons, and consolidation. If you found this article helpful, zip over to our enormous library full of other exceptional business-related articles.

So long and good luck!