Shipping Rates
Accessing shipping rates enables manufacturing and distribution companies with the critical tool needed to control cost, and ensure the freight bill is accurate.
What Shippers Need to Know
For manufacturers and distributors, shipping products is a huge part of doing business – but arranging transport with carriers and understanding freight rates can often be confusing. Having clarity around some key questions will ensure shippers don’t overpay or miss savings opportunities.
Freight rates are the prices charged by transportation carriers like trucks, trains and ships to haul cargo. Rates are usually based on the mode of transport (rail, road, ocean, air), distance, fuel prices and supply/demand dynamics. Significant rate fluctuations happen frequently.
Why do Shipping Rates Matter?
Freight spend is often one of the largest line items in the logistics budget for manufacturing and distribution companies. Understanding what drives rate changes and securing favorable contracts rates can translate to major savings. Being rate-savvy also helps accurately forecast budgets and improve profit margins per shipment.
Can Shipping Rates be Integrated into my ERP?
Shippers often ask if TLI can integrate carrier's rates into my Enterprise Resource Planning (ERP) system. By having real-time access to carriers' rates within your ERP, you can make informed decisions that lead to more cost-effective and efficient transportation management. TLI's innovative approach empowers businesses to optimize their supply chain strategies, ensuring that every freight decision is aligned with both operational excellence and budgetary considerations.
TLI's integration solution provides a significant enhancement in data management and invoice accountability. The integration allows for a comprehensive audit of the freight bill, ensuring accuracy and transparency in financial transactions. With this capability, businesses can track and manage their shipping costs more effectively, identifying areas for potential savings and ensuring that every transaction aligns with agreed-upon rates.
Top 3 Questions Shippers Ask
How do I compare & vet carriers on pricing?
There are tens of thousands of carriers offering varying rate structures. Freight Brokers like TLI recommend optimization for shippers through our TMS's automating rate comparisons and carefully evaluating carriers on capabilities, reliability and technology beyond just price.
How can I secure better long-term rates?
Rather than only sending spot bids, exploring contract rates with committed volumes over 3-12 months provides more rate stability. The other benefit is that contract rates are also attractive to carriers. At TLI we call these "Hang your hat, freight." TLI's sophisticated TMS system offers understanding lane histories and future shipment needs.
What impacts rates and should I accept surcharges?
Many factors affect pricing like fuel, equipment shortages, busy shipping seasons. Being flexible on transit days can secure better pricing. Rejecting accessorials like fuel surcharges or detention fees can also impact negotiation leverage with carriers because they will hedge by increasing the base linehaul cost.
