Shipping by air is can be extremely high in price, but there are ways to cut these air freight costs.
Freight costs can scale very fast high, depending on many factors such as cargo type, distance, the number of shipments per month..etc. Here at Mach 1 Global, we have identified six of the best ways to reduce air freight costs. Use these tips for your next shipment to anywhere in the US and save as high as 50% on your next shipment!
Six Ways to Cut Air Freight Costs
Find a Local Consolidation Program To Ship Smaller Freight
Finding a local consolidation program can help cut air freight costs up to 25%. When possible, combining shipments with nearby shippers going to the same destination will help both parties. Even larger shippers, like Target and Colgate, have found themselves consolidating locally to severely cut air freight costs. However, this does depend on the cargo being shipped. For example, fresh produce, pharmaceutical goods that require strict temperature control and high-risk items may not be best for this option.
Look into the local Chambers of Commerce or other local business organizations to find these programs. You can also work with a third-party logistics (3PL) company that offers this service too.
Ship More but Less Often
When possible, encourage your customers to take larger orders. Not only does it save you more money, but allows for the customers to save more overall. For example, shipping six to eight pallets together will average out to lesser costs, as opposed to sending two to four pallets every other day. With air freight, it makes sense that having to utilize more trips means more labor, more gas, and more transportation for the carriers. As you can tell, prices will stay this way unless you’re able to change the one factor to greatly reduces the overall air freight costs.
Ship on Off-Peak Days
Knowing when the on-peak days are will allow you to find the best instances to ship to reduce air freight costs. With most consumer goods businesses, the off-peak days for shipping is Friday. Thursdays are the days they want their products stocked up in preparation for the weekend. Therefore, shipping during the weekend will greatly reduce air freight costs as well.
Pick Up Deliveries at Night
Most shippers will want carriers to pick up their freight during the day, but not everyone can do it if it conflicts with another run. By offering night pickups, carriers can make their daily deliveries, then swing by and pick up your shipment on the way to their next destination. This maximizes the carrier’s assets use on longer routes, which indirectly will cust air freight costs.
Develop Relationships with Freight Shippers
When freight shippers maintain their business with freight carriers, it allows for a more strategic, long-term relationship to develop. Not only will you get transportation management advantages, but it also allows both sides to create a more efficient network with one another.
A longer term contract will lock the freight costs, allowing for any fluctuations in the market to not affect your company. On top of that, friends do better business with friends. Air freight carriers will be more obligated to find the best options for you that not only cuts your overall air freight costs but can be quicker in travel time, too.
Outsource the Transportation Department
For some smaller companies, having a core freight management team is not an option. It can be extremely expensive and time-consuming to hire, train and maintain a transportation team. When you outsource the transportation and logistics of freight, it allows for you to transfer the burden over to them. Additionally, these companies can purchase operational products in bulk, like parts/accessories and fuel. Even if you have your own carrier line, you will still save more money on air freight shipping at the end of the day.
If you are considering looking for a new air freight provider, check out our air freight services and who we have served for. The first step to cutting air freight costs is doing research before selecting a carrier. Learn more about our transportation services at Mach 1 Global!
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