In international trade, logistics costs account for a considerable proportion, and freight costs are a major part of logistics costs.transportation calculation So, how can you reduce freight costs through effective strategies to reduce overall logistics costs? Here are some practical suggestions that can help you save unnecessary expenses.

First of all, we need to consider what factors will affect the freight cost. Transportation routes, modes of transportation, freight forwarders, choice of carriers (e.g. shipping lines, airlines, etc.) , bargaining power of the goods and packing method are all key factors affecting the freight rate.

Transportation Route

The choice of transportation development routes has a direct through impact on freight rates, because different routes for companies mean different distances and transportation working hours in China. When choosing to carry out transportation technology routes, our country should fully consider the urgency of the goods.Intra Asia Routes If there is no time allowed, you can choose for yourself slower sea transportation or non-direct routes, so that students usually think that they can save some money. Similarly, when air transportation, transit flights are often more economical than direct flights.

the mode of transportation

Modes of transportation include ocean, air, express, rail, automobile, and pipeline. Each mode of transportation has its own characteristics and applicable scenarios. For example, although air transportation is fast and safe, it is also relatively expensive and has strict limitations on cargo size. Sea transportation is less timely and less costly because of the large volume of transportation. Therefore, according to the characteristics of the goods and customer needs, a reasonable choice of transportation mode is the key to reduce costs.

Third, the freight forwarder

Choosing the right freight forwarder is also very important. Each freight forwarding company has its own advantageous routes, and if you choose its advantageous routes, you can usually get more favorable freight rates. On the contrary, if the freight forwarding company does not operate a certain route directly but subcontracts the cargo to other companies, additional costs may be added. Therefore, it is very important to choose a competitive freight forwarding company (e.g. Shenzhen LingShun International Logistics).

Carrier

Like freight forwarders, carriers have their own preferred routes. If a non-dominant route is chosen, or if the carrier does not operate the route directly, but subcontracts the cargo to other carriers,pallet transport cost this may result in increased freight costs. Therefore, choosing the right carrier is also important for controlling freight costs.

Cargo Packaging

The way goods are packaged will directly affect loading efficiency and transportation cost, especially in the case of LCL air and sea transportation. For example, in air transportation, whether or not to use pallets is an issue to consider. Since air freight is charged on the basis of gross weight, the weight of the pallet will be included in the cost, especially in the case of heavy wooden pallets, which can be quite expensive on their own and for air freight.

To summarize students, to achieve an effective reduction in freight costs and reduce the total cost of logistics, a comprehensive consideration and careful planning is needed in the issues of transportation route planning, choice of transportation service, choice of freight forwarder and carrier, bargaining techniques, and product packaging design techniques. By learning these research methods, you can effectively save the cost of logistics information and improve the competitiveness of your own business.