Why You Should be Shopping Your Freight Rates

While many shippers have carrier partners that they work with time and time again, decision-makers might want to hold off on approving their next shipment.

All kinds of different factors can impact freight rates, and while a specific load might have cost a certain amount one week, this could change greatly come the following week. What's more, it might be more cost-efficient to use one mode of shipping versus another.

Even small differences in freight rates can add up quickly, especially for organizations that regularly make batch shipments. So before you sign off on your next shipment and pay more than you have to, consider shopping around to make sure you're getting the best rate.

Rising fuel costs and increasing driver retirement is affecting freight rates.

GUIDE: Carrier Rate Shopping

What can impact freight rates?

If you're not currently shopping around, freight quotes are likely fluctuating more than you realize. This is because a whole host of different elements impact rates, and go into calculations for quotes, including:

• Fuel costs: If carriers find that they have to pay a little more for their trucks or container ships to travel the same routes, they'll build this extra cost into customers' rates.
  
  

"The cost of maritime and land transport is, of course, related to the price of fuel," noted order management software provider Unleashed. "Savings (or losses) are passed on to consumers - either indirectly or through a fuel cost component built into a carrier's pricing model. And of course, if fuel prices increase, carriers will pass the additional expense on to merchants."

• The commercial driver landscape: As is taking place in many industries, companies are seeing an increased number of open commercial driving employment positions, particularly as older drivers retire. In fact, one large regional carrier recently reported that more than 20 percent of its current driver workforce is preparing to retire over the next five years.
• Rising freight demands: Especially as we head into the end-of-year shopping season, retail and rising demands in other industries will increase freight and shipment needs as well.

Download the Carrier Rate Shopping Guide

Freight Rate Shopping

Don't miss out on savings

With so many different elements coming into play and impacting freight rates, it's imperative that shipping and logistics managers shop around. While some may be tempted to trust the first quote that comes from a broker, there are more factors to consider with freight rates than the size of the shipment and the delivery rate. Shopping and comparing available rates - including cross-mode options - helps decision-makers achieve full visibility, and get a true understanding of the rates available to them.

Through freight rate shopping, logistics managers can be sure that they're getting the best rate for each shipment, supported by the most efficient means of delivery. In this way, the business isn't saddled with extra, unnecessary costs.

You might think it'd be difficult to shop around for the best price. Thankfully, we've made it simple with our Freight Rate Shopping, which lets you get quotes for an unlimited number of shipments - and enables you to save an average of 10 percent on each quote.