Strategies to Reduce Air Freight Costs: Six Approaches
Shipping by air can often come with high expenses, but there are effective ways to mitigate these air freight costs. Freight costs can rapidly increase based on factors like cargo type, distance, and shipment frequency. At Omni Logistics, we’ve identified six valuable strategies to help you cut down on air freight expenses. Apply these tips to your next shipment within the US and potentially save up to 50% on your costs.
Six Approaches to Lowering Air Freight Costs
1. Leverage Local Consolidation Programs for Smaller Freight
Consider utilizing local consolidation programs to reduce air freight costs by up to 25%. By consolidating shipments with nearby shippers headed to the same destination, both parties can benefit. Even major shippers like Target and Colgate employ local consolidation to significantly slash air freight expenses. However, the viability of this option depends on the nature of the cargo. Perishable goods, pharmaceuticals requiring temperature control, and high-risk items might not be suited for this approach.
You can discover these programs through local Chambers of Commerce or other business organizations. Alternatively, collaborate with a third-party logistics (3PL) company like Omni Logistics that offers this service.
2. Encourage Larger, Less Frequent Orders
Whenever possible, encourage your customers to place larger orders. This not only saves you money but also allows your customers to save overall. Shipping six to eight pallets together averages out to lower costs compared to sending two to four pallets every other day. With air freight, more trips mean increased labor, fuel, and transportation costs for carriers. The key to significantly reducing air freight costs is minimizing the number of trips.
3. Opt for Off-Peak Shipping Days
Knowing the off-peak shipping days allows you to find optimal times for shipments to reduce air freight costs. For many consumer goods businesses, Fridays are off-peak days for shipping. Thursdays are when they prefer their products to be stocked up for the weekend. Therefore, shipping during weekends can substantially reduce air freight costs.
4. Choose Nighttime Pickups
While most shippers prefer daytime pickups for their freight, this might conflict with other runs. Offering nighttime pickups enables carriers to pick up your shipment on their way to their next destination after completing their daytime deliveries. This maximizes carrier assets usage on longer routes, indirectly cutting air freight costs.
5. Develop Strong Relationships with Freight Shippers
Maintaining long-term relationships with freight carriers fosters strategic partnerships. This not only provides transportation management advantages but also enables both sides to establish an efficient network. A long-term contract can lock in freight costs, safeguarding your company from market fluctuations. Additionally, good relationships often result in better business interactions. Air freight carriers will be more motivated to find cost-effective options that not only reduce your overall air freight costs but also offer quicker travel times.
6. Outsource the Transportation Department
For smaller companies, maintaining an in-house freight management team might not be feasible due to high costs and time constraints. Outsourcing transportation and logistics transfers this responsibility to specialized companies. They can purchase operational products in bulk, such as parts, accessories, and fuel. Even if you operate your own carrier line, outsourcing can lead to significant air freight cost savings.
If you’re exploring new air freight providers, take a look at our air freight services and the clients we’ve served. The first step toward cutting air freight costs is conducting thorough research before selecting a carrier. Learn more about our transportation services at Omni Logistics!
