Managing Freight Costs and Delivery Delays 2023
As we enter the new year, new challenges also await the Texas freight shipping industry, and among these are the costs and delivery delays associated with freight shipments.
In this article, we will explore freight shipping trends in Texas, how freight carriers can manage freight costs, and steps shippers should take to reduce delivery delays, among many others.
Reasons for Current Transportation Delays and Increased Freight Costs
Many factors come into play when shipping companies estimate freight shipping rates. Depending on the freight’s origin, destination, and weight, freight shipping can also be impacted by factors such as:
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Weather events
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Road closures
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Traffic congestion
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Increased freight volumes
All of these reasons can cause freight shipment rates to increase. Additionally, freight carriers need to factor in fuel costs, and labor and equipment costs when calculating freight shipping prices.
The current Texas freight shipping landscape, however, adds another layer of factors that have caused transportation delays and increased Texas shipping rates, the main one being increased oil prices. This has caused freight carriers to increase freight rates by up to 10%.
This has also snowballed into other ship freight problems, such as seaport and international airport congestions, delays in freight delivery, and freight held up at the border.
Reducing Risk Related to Transportation Costs and Delays
The good news, however, is that there are ways to achieve lower freight rates, especially when you work with a reputable freight carrier like Value Truck.
What kinds of shipping services should you look for aside from competitve pricing? What benefits can freight shipping companies like Value Truck offer?
Dual Sourcing
Having freight shipments from two freight carriers allows you to have freight shipped at varying rates, which can give you the option of opting for whichever freight rate is best for your freight shipping needs.
It also reduces freight delays, since freight shipments can be rerouted to a freight company with an earlier delivery date.
Onshoring and Nearshoring
Onshoring freight shipments means the freight is shipped within the same country. This reduces freight costs and delays related to long-distance freight shipping.
For truckload freight, freight carriers in Texas can also opt for nearshoring and inbound shipping freight, which are freight shipments from one state to another. This offers a cost-effective option, especially for freight shipments to nearby areas, such as TX San Antonio, TX Houston, TX Dallas, TX Austin, TX Fort Worth, TX Plano, TX Laredo, and more.
Insurance Coverage
Having freight insurance coverage is a great way to protect freight and cargo from any unforeseen events that may occur during freight shipping. This gives shippers peace of mind and also lessens freight costs since freight insurance can be acquired at a competitive pricing rate.
Commercial Contract Review
Reputable freight shipping companies like Value Truck offer freight contracts that are customized according to shippers’ needs. This can help freight carriers to reduce freight costs since the contract and scope of work will be customized to fit the agreed budget.
Tips to Reduce Freight Costs
There are also several other steps you can take to further reduce Texas freight shipping rates:
1. Contract steady lane volume
Steady lane volume refers to freight shipments that travel to the same origin and destination. This gives freight carriers the option to reduce freight rates since freight shipments are expected on a regular basis and freight carriers can plan for them.
2. Ship on off-peak days
Off-peak days refer to freight shipping days that are not as busy, such as weekends and holidays. This can help freight carriers lower freight rates since freight shipments won’t be competing with freight shipments during peak days (weekdays).
3. Find a consolidation program near you to handle smaller shipments
Consolidating freight shipping services means using one freight carrier to handle freight shipping and freight delivery on behalf of several freight carriers. This offers freight carriers the opportunity to reduce freight rates since freight shipments will be handled in bulk.
4. Develop relationships
Freight carriers are more likely to reduce freight rates when you develop a relationship and mutual trust with them. This helps freight carriers be more flexible with freight rates, especially when freight shipments are expected to be sent on a regular basis.
5. Increase delivery lead times
Shipments that are urgent often have higher freight rates as freight carriers have to rush freight shipments. Increasing freight delivery lead times can help freight carriers reduce freight costs.
6. Develop a reputation for loading quickly
Loading freight quickly and accurately helps freight carriers reduce freight costs since freight shipments can be loaded faster, ensuring that freight deliveries are made on time. A positive reputation also equals more demand, and freight carriers are more likely to reduce freight rates when freight shipments are in high demand.
7. Offer later pick-up times
Later pick-up times, such as those after 3 PM and onwards to late evening, can help freight carriers save on freight costs since freight carriers won’t have to delay freight shipments until the next day. This also helps freight carriers reduce their overall freight costs since freight shipments are delivered on time.
8. Minimize the number of pallet spaces needed when shipping LTL
Less Than Truckload (LTL) freight shipping services are best suited for freight shipments that don’t require an entire freight trailer. While this option is considered cost-effective, you can further reduce expenses by minimizing pallet space, as freight carriers usually charge by the pallet.
9. Ship more products, less often
This approach is ideal for freight carriers since freight shipments won’t be competing with other freight shipments on peak days. This allows freight carriers to reduce freight costs and also plan freight shipments ahead of time.
10. Look for carriers based near your ship-to points
This is probably the most helpful yet often overlooked technique. Many freight carriers offer their services in specific geographical locations. Shipping freight shipments to freight carriers located near your ship-to points can help freight carriers reduce freight costs since freight shipments won’t have to travel a long distance.
Freight Shipping Texas
If you’re looking for freight shipping services in Texas, Value Truck is the freight shipping solution for you. We offer freight shipping solutions all throughout Texas and nearby states, including Mexico, with a huge network of freight carriers that provide Texas freight shipping at competitive rates.
Value Truck offers among the most cost-effective Texas trucking rates and Texas freight shipping, and we also provide freight solutions for shipments going to other countries.
We have offices in various locations such as:
As we mentioned, we also have a vast network of freight carriers, so no matter where your freight shipments need to go, we can handle it without you breaking the bank.
To Reduce Freight Costs, Challenge the Status Quo
The freight shipping industry is changing rapidly and freight carriers are continuously looking for ways to reduce freight costs.
By challenging the status quo, freight shippers can save money and reduce freight costs. The freight shipping practices outlined above are a great starting point for freight shippers looking to manage freight costs and delivery delays in 2023.
Additionally, by choosing to work with a shipping solutions company like Value Truck, you’re one step ahead of the competition when it comes to freight shipping cost management.
Contact Value Truck today to learn more about freight shipping in Texas. We offer competitive freight rates and freight delivery solutions to meet your freight shipping needs!