The Value of Getting the Best Carrier Rates

The best carrier rates mean the difference between keeping product price points under control or passing shipping costs along to customers. The best rates deliver products on time, without added hassle, without added fees, and leave customers with a sense of satisfaction. The best rates reflect both positive attributes for both the shipper and carrier. Carriers realize more productivity when moving more freight shorter distances, and shippers can take advantage of lower rates associated with volume discounts. Unfortunately, finding the best carrier rates remains a complicated process, especially for shippers operating across disparate areas and working with dozens, if not hundreds, of smaller carriers. 

Tips for Finding Better, More Competitive Rates

To secure the best carrier rates for freight, shippers should follow these tips:

1. Take advantage of digital, real-time rating systems. Real-time freight rating eliminates the effect of time delays between scheduling and shipping, ensuring shippers pay the expected rate.
2. Learn what the carrier defines as eligibility for “Shipper Of Choice” status. Carriers have a broad license when setting requirements for “Shipper Of Choice” status. Know what they are and how to become eligibility.
3. Keep economies of scale in mind, negotiating better rates in tandem with growing the company. Buying power is real, and working with a 3PL or other supply chain partners can improve access to economies of scale.
4. Use a TMS to track and handle both inbound and outbound freight management. Centralized transportation management eliminates data siloes and keeps all freight in view of the bigger picture.
5. Give customers the option to pay premiums for faster delivery. Customers are willing to pay a premium to get their products faster, so shippers could use that principle to lower freight spend and avoid the problem entirely.
6. Be transparent about the real costs of faster shipping. Faster shipping comes with an environmental cost. While modern consumers want faster service, they also want sustainable interactions. Transparency about the environmental impacts of faster shipping will likely lead to a willingness to wait for deliveries, lowering costs along the way.