6 Effective Strategies to Reduce Shipping Costs in International Freight

Introduction: The Challenge of Rising Shipping Costs

In recent years, global crises have significantly impacted international freight prices, making it more crucial than ever for businesses to find ways to reduce shipping costs. As a leading Digital Logistics Platform, FreightAmigo understands the importance of cost optimization in the logistics industry. In this article, we'll explore six effective strategies to help you minimize extra charges and streamline your shipping expenses.

Recent data shows that nearly 50% of additional charges faced by shippers after booking are caused by weight adjustments, General Rate Increases (GRIs), and lack of proper export licenses. By addressing these issues and implementing smart practices, you can significantly reduce your freight costs and improve your bottom line.

1. Ensure Accurate Weight and Dimensions

One of the most common reasons for unexpected charges in shipping is inaccurate weight or dimensions. In fact, over 20% of unexpected charges are due to weighing and measuring errors. To avoid this costly mistake, consider the following tips:

Include All Packaging in Your Calculations

When measuring your shipment, don't forget to account for all packaging materials, including pallets. Every bit of space matters, whether it's taken up by goods or protective materials like bubble wrap.

Understand Chargeable Weight

Freight costs are determined by both weight and size. Carriers use a concept called "chargeable weight," which takes into account both the actual weight and the volumetric weight of your shipment. The higher of these two figures becomes your chargeable weight, which is used to calculate your shipping costs.

By accurately calculating your chargeable weight, you can get a more precise estimate of your total shipping costs and avoid surprises later on. FreightAmigo's Digital Logistics Solution automatically calculates chargeable weight for you, eliminating the need for manual calculations and reducing the risk of errors.

2. Obtain the Correct Export License

Exporting goods from any country requires an export license. Typically, your supplier should provide this document. However, if they don't, your freight forwarder will need to obtain one at an additional cost.

To avoid unexpected fees, always check with your supplier to ensure they will provide the necessary export licenses. By doing so, you can keep your goods moving smoothly through the supply chain without incurring additional expenses.

FreightAmigo's Digital Platform can help you manage and track all necessary documentation, including export licenses, ensuring compliance and reducing the risk of costly delays or penalties.

3. Be Mindful of General Rate Increases (GRIs)

General Rate Increases, or GRIs, are periodic increases in ocean freight costs that carriers may implement on the 1st and 15th of each month. These increases are typically passed on from carriers to forwarders and ultimately to importers and exporters.

To minimize the impact of GRIs on your shipping costs, consider the following strategies:

• Plan your shipment timing carefully, taking into account potential GRIs.
• Remember that GRIs apply to the time your goods are loaded, not when you book.
• Book your shipment once your goods are ready, allowing a few days for pickup and delivery to the port.

By timing your bookings strategically, you can help ensure that the price you book is the price you pay. FreightAmigo's Digital Logistics Platform provides real-time visibility into pricing and potential GRIs, allowing you to make informed decisions about when to book your shipments.

4. Arrange Prompt Pickup from the Port

If you're shipping a full container, it's crucial to arrange prompt pickup from the port. Containers that remain at the port for too long incur demurrage charges. Similarly, failing to return containers to the port on time can result in detention charges.

In today's environment of port congestion and delays, these charges can be particularly burdensome. To minimize these costs:

• Plan your pickup and return logistics well in advance
• Stay informed about port conditions and potential delays
• Consider using a Digital Logistics Solution like FreightAmigo to track your shipments and manage pickup schedules efficiently

FreightAmigo's comprehensive tracking system allows you to monitor your shipments in real-time, helping you avoid demurrage and detention charges by ensuring timely pickup and return of containers.

5. Understand Special Filing Fees

Importing certain types of goods may require special approvals and additional paperwork for customs entry, which can lead to extra fees. For example:

• Food items may require an FDA entry with your customs filing
• Importing copyrighted material may require compliance documentation

To avoid unexpected costs or potential confiscation of goods, it's essential to understand and prepare for any special filing requirements associated with your shipments. FreightAmigo's Digital Logistics Platform can help you navigate these complexities by providing up-to-date information on regulatory requirements and assisting with the necessary documentation.

6. Ensure Correct Palletization

Proper palletization is crucial for avoiding additional costs and delays in shipping. Key considerations include:

Fumigation Certification

Pallets entering the United States must undergo fumigation and carry proper certification. If your goods are packed on pallets lacking certification, they will need to be repacked, resulting in additional pallet costs.

Include Pallet Dimensions in Measurements

As mentioned earlier, it's important to include pallet dimensions in your weight and measure calculations to avoid discrepancies and unexpected charges.

FreightAmigo's Digital Logistics Solution can help you manage palletization requirements and ensure compliance with international standards, reducing the risk of repacking fees and delays.

Conclusion: Optimize Your Shipping Costs with FreightAmigo

Reducing shipping costs in international freight requires careful planning, attention to detail, and a thorough understanding of industry practices. By implementing these six strategies, you can significantly minimize unexpected charges and optimize your logistics expenses.

As a leading Digital Logistics Platform, FreightAmigo offers comprehensive solutions to help you navigate the complexities of international shipping. Our Digital Platform provides:

• Accurate chargeable weight calculations
• Real-time tracking and visibility
• Efficient document management
• Up-to-date regulatory information
• Expert support to help you optimize your shipping processes

By leveraging FreightAmigo's Digital Logistics Solution, you can streamline your operations, reduce costs, and ensure a smoother, more efficient shipping experience. Our commitment to innovation and customer satisfaction makes us the ideal partner for businesses looking to thrive in the ever-changing world of international logistics.

Don't let unexpected shipping costs eat into your profits. Take control of your logistics expenses today with FreightAmigo's comprehensive Digital Logistics Platform. Together, we can transform the way you experience logistics and drive your business forward in the global marketplace.