How to Reduce Freight Costs Without Cutting Corners
Freight is often one of the largest operating expenses for manufacturers, distributors, and retailers. Here are 8 proven strategies to reduce costs while maintaining service levels.
1. Optimize Your Mode Mix
Not every shipment needs to go by truck. Consider:
- Intermodal rail for lanes over 800 miles (saves 20–40%)
- LTL consolidation for shipments under 10,000 lbs
- Pool distribution for multi-stop deliveries
Learn more about intermodal savings.
2. Consolidate Shipments
Combine multiple smaller shipments into full truckloads:
- Reduces per-unit shipping costs by 30–50%
- Minimizes handling and damage risk
- Improves delivery scheduling predictability
3. Negotiate Contract Rates
Lock in annual or multi-year contracts on your highest-volume lanes:
- Provides rate stability during market spikes
- Ensures capacity during peak seasons
- Builds carrier relationships for better service
4. Reduce Accessorial Charges
Common avoidable accessorials:
- Detention: Load/unload within 2 hours to avoid $75–$150/hour charges
- Layover: Schedule pickups to avoid overnight driver waits
- TONU: Don't cancel loads after dispatch
5. Improve Packaging and Loading
- Maximize trailer cube utilization (target 90%+)
- Use stackable pallets to increase density
- Standardize pallet dimensions for consistency
6. Leverage Technology
Use TMS and visibility tools to:
- Compare carrier rates in real-time
- Identify routing inefficiencies
- Track and reduce empty miles
Indray's CLM Platform provides these capabilities and more.
7. Review and Audit Invoices
Freight billing errors are common. Audit every invoice for:
- Correct weight and dimensions
- Accurate accessorial charges
- Proper fuel surcharge calculations
- Duplicate billing
8. Work With a Strategic Broker
A good freight broker provides:
- Access to thousands of carriers and competitive rates
- Market intelligence and rate benchmarking
- Volume leverage across multiple shippers
- Expert routing optimization
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Indray Inc helps shippers save an average of 15–25% on freight costs through mode optimization, carrier negotiation, and operational efficiency. Request a quote for a free cost analysis.
