5 LTL Freight Shipping Secrets That Save You Money now Part 2 By Michael Rogers shipping expert
Michael Rogers
June 05, 2008
www.4way.com
Last month, I shared with you the first in a series of insider shipping tips designed to help you avoid thousands of dollars in losses and countless hours of frustration. This month, youīll learn that if the rate sounds too good to be true, it probably is.
Insider Secret #2: Donīt Be Misled By Big Discounts
Trucking companies know that you are primarily shopping on price. As a result, they will often inflate their base price and quote seemingly bigger discounts to give the appearance of being the "better deal." If you ship freight on a regular basis, you know that discounts ranging from 35 percent to as much as 75 percent are commonly offered.
This is especially true if you use common carriers instead of contract carriers because their base rates differ greatly. But quite often, a carrier offering a 60 percent discount will be considerably more expensive than another carrier offering a 55 percent discount.
Add to this the many variables that play into shipping costs, and you simply canīt trust that you have the best deal based on a discounted rate.
We recommend that you always compare the bottom line TOTAL costs instead of discount percentages to make sure you are getting the lowest rate. This may include related costs associated with service level, load optimization, on-time delivery rates, claims ratios and more.
Look for Insider Secret # 3 next month or visit www.4way.com to download our ground-breaking whitepaper.
4 Way Logistics, Inc. is a non-asset-based 3PL that provides multi-modal transportation services. Based in San Ramon, Calif., 4 Way Logistics offers a broad array of transportation options to move freight, including truckload, LTL, intermodal, air, ocean, and heavy-haul projects.
Last month, I shared with you the first in a series of insider shipping tips designed to help you avoid thousands of dollars in losses and countless hours of frustration. This month, youīll learn that if the rate sounds too good to be true, it probably is.
Insider Secret #2: Donīt Be Misled By Big Discounts
Trucking companies know that you are primarily shopping on price. As a result, they will often inflate their base price and quote seemingly bigger discounts to give the appearance of being the "better deal." If you ship freight on a regular basis, you know that discounts ranging from 35 percent to as much as 75 percent are commonly offered.
This is especially true if you use common carriers instead of contract carriers because their base rates differ greatly. But quite often, a carrier offering a 60 percent discount will be considerably more expensive than another carrier offering a 55 percent discount.
Add to this the many variables that play into shipping costs, and you simply canīt trust that you have the best deal based on a discounted rate.
We recommend that you always compare the bottom line TOTAL costs instead of discount percentages to make sure you are getting the lowest rate. This may include related costs associated with service level, load optimization, on-time delivery rates, claims ratios and more.
Look for Insider Secret # 3 next month or visit www.4way.com to download our ground-breaking whitepaper.
4 Way Logistics, Inc. is a non-asset-based 3PL that provides multi-modal transportation services. Based in San Ramon, Calif., 4 Way Logistics offers a broad array of transportation options to move freight, including truckload, LTL, intermodal, air, ocean, and heavy-haul projects.
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