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SPILLMAGIC 28th February 2008 02:37 PM

Reduce My Freight Bill
 
Hello,
Last year my company paid roughly $250k in mostly LTL freight. We project that to increase to $300K in '08. I'm convinced that this is an area I can shave off a good 5-10%. Any suggestions on how I might go about doing so? FYI, we currently have contracted rates with discounts in the mid 70% range with various carriers.
Thx.

SmallMerchant 28th February 2008 02:42 PM

From what I understand, with all the major guys, FedEx and UPS, you get a contract rate based on number of shipments per year. The company I use to work for shipped about 300K per year and had a similar discount rate, so I am not sure you can do much better. But, who knows with today's economy.

Nick

pete 28th February 2008 05:24 PM

LTL (less than truckload) is not the same as parcel delivery like FedUps. More larger, heavier goods and pallets. Companies like Roadway, Yellow, Estes, Overnite/UPS, ABF, etc.

There are a number of freight consolidaters who you can work with on LTL.

Here's one site you might start.

https://www.redroller.com/shippingcenter/home

And search "freight consolidaters", particularly if you have partial loads, such as a 1/4 or so of a trailer. They will find 3 or 4 loads in the same starting area and close-by destinations and work out a route and a price.
.

Sporkman 28th February 2008 08:05 PM

If you can deal with longer delivery times, i.e. reduced service, you can probably get lower rates I'm guessing.


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