How to Reduce Freight Cost

Freight cost, sometimes, make up a large portion of the total cost of a product specially when it comes to low value and high weight products.  For example, if you are importing ceramic tile, the freight cost alone could make up over 50% of the price of the product.

How can you save on Freight Cost?

There are several ways you can save on freight depending on the mode of transportation.

1- Ocean Freight: If you are shipping a container, make sure to maximize the load as long as you do not exceed the maximum weight allowed. Also, if you are shipping a container of heavy, low value products, try to add a high value product in the same container and off course negotiate the best rates with the Freight Forwarder

2- Air Freight: Make sure you do not ship half full boxes; you will be paying for air. Consolidate items into a little number of boxes as possible.

Do not Mix dangerous goods with non-Dangerous goods in the same shipment, you will be paying the rate applicable to DG goods which is the highest

3- Inland Transportation

A- If you are shipping a full truck, fill it up to the max weight, Choose the best Inland Transportation Company.

B- For LTL shipments, make sure you use the right NMFC Classification. The higher the classification, the more you pay. Once again, do not ship half full boxes.

4 – Courier Shipping; When shipping Via UPS, FedEx or USPS make sure to use the smallest size box as they charge based on what will net more revenue which is weight or volume. Refer to Dim weight calculation. Shipping a pillow that weighs 5 lbs. will cost you more than a computer that weighs 5 lbs. since the pillow shipping cost will be charged based on dim weight.

If you are an importer, make sure you use the correct harmonized Tariff Code , there is no need to pay  more in duties than you have to, remember to do your research and get the best shipping rates without compromising service

 

Resources:

International shipping rates

Ocean Freight rates

 

 

Request a freight Quote

Miami ocean freight forwarders

Miami is the undisputed “Trade and Logistics Hub of the Americas” located at the epicenter of global trade in the strategic center of the Western Hemisphere. Miami Ocean Freight forwarders are here to help. Miami provides superior trade, Ocean Freight Services, Air Freight Services and logistics Solutions, to companies using Miami as a base of operations or as a transshipment point.

Miami Ocean Freight Forwarders

Miami ocean freight forwarders are numerous. The competition is so strong which drives the service fees down

Miami International Airport continues to be the #1 international freight airport in the United States and the 9th in the world. Port Miami is the 11th leading container port in the US. Major partners at Port-Miami include 16 shipping lines, FEC railway, on-dock facilities at the seaport. Nearly 90 airlines at MIA contribute to year-round, two-way cargo traffic linking the Americas with Asia, Europe, the Middle East and beyond. Both ports provide easy access to foreign trade zones and superior warehouses designed to meet your requirements.

Florida is projected to become the third most populous state in the U.S. with more than 19 million residents and 94 million visitors, providing new opportunities for global companies. More than 1,400 multinational corporations have offices in Miami to take advantage of the multi-lingual workforce who speak over 130 languages with extensive experience in the 47 countries of the Americas as well as Asia and Europe.

Miami’s international business community stands ready to assist you to increase your trade opportunities, meet new trade partners and connections, lower your costs and facilitate your entry into one of the world’s leading growth markets.

Port Miami has the most direct service to Latin America and the Caribbean making it the premier hub to the Americas. 16 top shipping lines sail to more than 85 ports – with regular service to Asia, Europe, Latin America and beyond.

Port Miami is the first port of call on the East Coast for cargo transiting the Panama Canal, making it the closest gateway to the US market, reducing time-to-market as well as transportation and shipping costs. At -50 feet, Port Miami’s depth will make it the only US port on the Eastern Seaboard south of Virginia that can accommodate super Post Panama vessels.

For a list of the best Miami ocean freight forwarders, you should search the yellow pages.

Miami has become a hub for Procurement Service Providers .