Expedited freight shipping is a fantastic option for individuals and businesses that require the swift transportation of goods that have a tight deadline. Although expedited services ensures faster delivery times, it usually also comes with a heftier price tag. Understanding why it’s a more costly service and learning strategies that you can adopt to reduce these costs can significantly benefit you as the shipper and your business. Let’s take a look deeper…

What Influences Expedited Freight Shipping Costs?

Here are some questions to think about when deciding a transportation method to suit your needs. Every one of these factors will have an influence on the final cost.

1. How urgent is your shipment? ⏰

The shorter the timeframe you have to transport your goods, will directly impact your shipping costs. Services like same day or over-night typically cost more due to the prioritization and resources required.

2. How far does the freight need to travel? and what is the route complexity? 🛣

Like with any freight transportation, the further the distance, the higher the price tag. This is simply down to the more time required on the road and higher fuel consumption.

3. What are the dimensions and weight of the cargo? 📦

Heavier, bulkier freight require more space than for example palletized freight, and trucks also use more fuel to move a heavier item. So, depending on the exact dimensions and weight of your shipment, will determine the trailer type needed to make the shipment possible. These factors will heavily influence your freight rate.

4. What are the fuel surcharges at the time of transporting your goods? ⛽️

Fuel costs are forever changing, one minute they’re up, the next they’re down and everyone’s lining up to fill up. These fluctuations are passed onto the shipper, if we’re experiencing lower fuel costs then the saving will be passed on. However, increased fuel costs also mean higher freight rates. Be sure to keep an eye on the fuel surcharges with your carrier. We update our weekly digital newsletter with up to date surcharges, other logistics partners might do the same.

5. Does your freight require special handling or accessorial services?  🧤

Additional services like, liftgate, inside delivery or handling hazardous materials are all methods that incur extra fees. This is because of the extra work, potentially extra staff and extra precautions needing to be put in place. So, be sure to factor these into your budgeting.

6. What is the current shipping demand? 📈

During high demand times, carrier capacity might be limited, meaning you’ll see increased pricing for expedited services. During a lull, when there’s more trucks than loads, you’ll see lower and more competitive pricing.

7. Are you making international shipments? ✈️

International shipments require customs duties, taxes and other extra administrative paperwork. These administrative tasks take time out of the day for your shipping partner to complete, adding to the expenses.

Adoptable Strategies To Reduce Expedited Freight Costs

Now that we’ve covered some of the reasons why your expedited freight shipments tend to cost more than a regular shipment, obviously depending on the freight and distance. We now want to touch on some useful strategies that we’ve found can help to reduce the expenses associated with expedited costs. Consider these following approaches:

1. Optimize packaging 📦

One of the biggest factors contributing to how carriers calculate pricing is the dimensions of the freight, like we mentioned earlier. So, to minimize dimensions, make sure you use efficient packaging that does not add to the size and weight of your cargo but also does not compromise the level of protection.

2. Work with a freight broker 👩‍💻

Freight brokers have a large network of connections and they’re great at pairing your shipments with carriers that have capacity for your needs. Through their vast network, they can also secure you the best and most competitive rates available, making freight brokers a fantastic option for both cost and efficiency.

3. Explore different transportation modes 🚝✈️🚚🛳

Sometimes the mode of transportation that you think will be the most cost and time efficient, just isn’t. For example intermodal options, which combines multiple transportation methods might work out as the best option. Perhaps discuss with your shipping partner some alternative methods.

4. Utilize regional distribution centers 🏢

Strategically using distribution centers close to your key markets, means that you can significantly reduce shipping times and distances. You can do this by:

• Using a third-party warehouse in high demand areas
• Store frequently shipped items in decentralized locations

With your goods closer to your end customers, you can benefit from using less expensive expedited shipping methods and get your freight where it needs to be quicker.

5. Regularly audit your freight and costs  💵

If you regularly ship freight and find yourself opting for expedited methods frequently then auditing your expenses and identifying trends that lead to excessive shipping expenses can help to eliminate unnecessary additional charges.

6. Plan, plan & plan 📝

Sometimes expedited shipping cannot be avoided. However, businesses can minimize the amount of need they have for expedited shipping by planning extensively. With efficient forecasting, using predictive analytics, and enhanced inventory management including creating a level of buffer stock to prevent stock outs that lead to rushed shipping. You can effectively minimize unnecessary urgent shipments, leaving you only opting for them when it’s a real emergency situation.

Conclusion 💭

Expedited shipments don’t need to be scary. With the right partner your expedited shipments can become a really simple process. Together with a comprehensive approach, by adopting the above strategies and working with a fantastic partner that excels in expedited methods (wink wink, PEI 😉) you can effectively reduce unnecessary spending and keep your business as profitable as possible.

At PEI we’re experts in all things specialized and expedited freight, if you have any shipments that you need a helping hand with contact us on:

Phone: 888-SHIP-911 or use the link below, we hope to hear from you to make your shipping nightmares a daydream! 😊

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At PEI, we’re experts in dealing with expedited and specialized freight and can handle yours with any custom requirements.