The need of decreasing freight transportation expenses
With international trade allowing businesses to expand their goods and services to an international customer base, production costs are optimised, and companies become increasingly specialised. And for all this to happen the logistics is also compelled to evolve and provide ways to decrease freight transportation expenses.
People that work directly with logistics face daily challenges ranging from the reduction of freight transportation costs to customer satisfaction. Therefore, it is necessary to consider several factors, such as cargo security, optimising logistics freight cost, and the monitoring of all stages of cargo transportation.
Main cost drivers in freight transportation
The decrease in freight transportation costs allows to improve the pricing of its overall services and to negotiate more attractive prices with the customers. If your company can cut costs, can increase your bargaining power without jeopardizing business profitability it will become more competitive and comes out ahead of competitors. But what are the main cost drivers?
- Fuel costs: The cost of maritime, land and air transport is, undoubtedly related to the price of fuel. As fuel prices rise, cargo trucks and container ships become more expensive to operate, and the cost of transport goes up. And of course, if fuel prices increase, carriers will pass the additional expense to the shipper.
- Vehicle depreciation costs: Buying a transport vehicle means investment. When the company operates in the logistics sector, it invests in fixed assets. As the transport vehicle has a useful life, each year its value decreases and it is necessary to have costs with repairs or replacement of the transport means for a more modern one.
- Increased customer expectation: The critical factor in reusing the service is customer expectations. If the transport service does not meet the expectations of customers, the certainty of non-repetition of the service is almost inherent. When expectations increase, companies are forced to invest more in the excellence of transportation, generating an increase in freight transportation costs.
- The Global Marketplace: The logistics and transport market has expanded, and competition has increased. Thus, the importance of this sector as well. The delivery of a shipment becomes more and more a deciding factor when purchasing a product, and companies have to seek a cost-effective transportation solution to gain customer loyalty. The best way to generate a high cost-benefit is to keep increasing the quality of the service, always seeking to optimize logistics freight cost.
- Costs with storage: In some cases, the carrier also needs to store cargo. When this happens, other expenses are taken into account—for example, costs related to the rental of warehouses, labour, facilities and equipment. A carrier’s storage costs depend directly on the turnover of goods. If the company has more items in stock than it transports, storage costs increase.
- Tire costs, such as the purchase of a new one or its retreating;
- Maintenance costs, whether preventive, predictive or corrective;
- Cubage costs: when lightweight goods fill the truck or container before reaching the maximum limit;
- When applicable, the cost of returning goods to the recipient;
- Cost with re-delivery when the recipient cannot receive the cargo on the first delivery.
How do I lower my international freight costs?
At Eurosender we understand the difficulty of dealing with transportation logistics; therefore we see to help your business to optimize logistics freight costs, to reflect on a lower final price and high-quality product to your consumers. But then comes the essential question: How do I lower my international freight costs?
Below we provide some freight cost reduction ideas to boost your business with Eurosender:
- Plan: Last-minute shipping means more expenses, so avoid it by planning your shipping with Eurosender previously. In this way, we can find the route, transportation and carrier that best fits your quality standards and budget. On the Eurosender platform, you have access to a range of transport services, both sea, road, and air freight. Our platform acts as a logistic market and we choose the option and carrier that best fits your needs profile at the lowest cost.
- Payment Credits: When booking on our platform you can have the option to pay with Eurosender credits. By creating a Business account on our platform, you have the option to top up your account with the desired amount of money and pay for future orders with the available credit. By doing this, you have 10% discounts on various services that will help you optimize the logistics freight costs.
- Use online shipping: One way to save is to pay for your shipping online. With Eurosender, you have access to a modern digital platform, and we choose the best carrier on your behalf, from a vast network of already carefully pre-selected providers. Once we have a parallel partnership with the most reliable carriers on the market, our prices and quality are unbeatable.
- Packing: To lower costs, it is essential that the merchandise is not damaged during transport and thus does not need to be replaced. And the correct packaging is your greatest ally to decrease any product damage and cost related to it.
- Ask about association discounts. Some carriers do offer a discount for exclusivity, meaning that they will offer lower prices for you to only ship with them. Find out if you can have discounts when becoming a partner with a carrier.
With several different forms of transport, we adapt the service to your need and the size of your cargo. The services we offer for freight transportation includes but not only:
- Shared truckload (LTL): If you are sending a lower load number, our Shared truck is your ideal solution. With just a few stops, this service guarantees security at the best cost-benefit ratio.
- Full truckload (FTL): If you are sending cargo that will occupy an entire truck, this is ideal! Safety is due to the direct route, without stops, which also guarantees the lowest risk of damage.
- Express: In a hurry to send some merchandise or documentation? Don’t worry, using our express service you are guaranteed a 24h delivery in Europe and 48-72h worldwide!
- Individual offer: Do you have any merchandise with unconventional dimensions that cause you problems sending them? The solution is on our platform! Just access our individual offer service and be ready to send your shipment.
More than optimising logistics freight costs
Smarter shippers don’t think only about optimising the freight logistics costs, but also about the reliability of the carrier, once the reputation itself has a high cost. That’s one of the many reasons why Eurosender is your perfect partner. We are a company with a great reputation, that works with a vast network of reliable carriers so that your merchandise arrives in perfect condition.