How to Reduce Ocean Freight Cost?
There are many ways through which you can reduce the ocean
freight costs. However, you should have a clear understanding of the
scope, quantity as well as the frequency of your shipment in order to
save money. Following are some of the tips that will help the shippers
to reduce their expenses and increase their operational efficiency.
- You must try to minimize the LTL or less than truckload container use. It is a well-known fact that the cost decreases drastically when you ship larger equipment/bulk items. You must also try to consolidate the LTL freight to a FTL container. When there are multiple shippers sending freight to the same destination, you must combine the shipments so as to save money.
- You must try to bypass the distribution centers and should ship to the stores directly. Using warehouses and distribution for holding inventories increase your cost manifolds. Thus, you should try to consolidate your shipments and send them directly to the stores.
- Forecasting is an important tool in case of ocean freight. You should forecast about the annual ocean freight that you expect and should fine tune it to weekly or monthly so that the carriers are easily able to update their allocation models. Providing equipment and lane information will help the carrier to align on a defined level and will boost your reliability and credibility.
- You should try to avail the benefits of round trip. Creating a good balance will help you to maximize your efficiency. Providing the unbound as well as inbound flows from any location allows the carrier to make optimal use of resources. If a carrier has to return empty, you will lose revenues and thus round trip opportunities should be taken care of.
- You must build and promote the long-term relationship with your carrier base. You should try to develop annual contracts and provide forecasting accuracy to ensure that you get the best deal. You should also review your carriers once every 4 or 6 month to discuss the performance of the carrier or the market trends.
- You should be well versed with the current market prices, demand, capacity as well as the fuel prices. You should have set targets so as to achieve the best pricing. You will find plenty of information on this subject both online and offline.
All the steps given above will help to bring more efficiency in your existing system and you can save a considerable amount of money in shipping.
- You must try to minimize the LTL or less than truckload container use. It is a well-known fact that the cost decreases drastically when you ship larger equipment/bulk items. You must also try to consolidate the LTL freight to a FTL container. When there are multiple shippers sending freight to the same destination, you must combine the shipments so as to save money.
- You must try to bypass the distribution centers and should ship to the stores directly. Using warehouses and distribution for holding inventories increase your cost manifolds. Thus, you should try to consolidate your shipments and send them directly to the stores.
- Forecasting is an important tool in case of ocean freight. You should forecast about the annual ocean freight that you expect and should fine tune it to weekly or monthly so that the carriers are easily able to update their allocation models. Providing equipment and lane information will help the carrier to align on a defined level and will boost your reliability and credibility.
- You should try to avail the benefits of round trip. Creating a good balance will help you to maximize your efficiency. Providing the unbound as well as inbound flows from any location allows the carrier to make optimal use of resources. If a carrier has to return empty, you will lose revenues and thus round trip opportunities should be taken care of.
- You must build and promote the long-term relationship with your carrier base. You should try to develop annual contracts and provide forecasting accuracy to ensure that you get the best deal. You should also review your carriers once every 4 or 6 month to discuss the performance of the carrier or the market trends.
- You should be well versed with the current market prices, demand, capacity as well as the fuel prices. You should have set targets so as to achieve the best pricing. You will find plenty of information on this subject both online and offline.
All the steps given above will help to bring more efficiency in your existing system and you can save a considerable amount of money in shipping.
Ocean freight
is the most common method of transportation of goods overseas. You will
find many such services which specializes in sending ocean freight
safely and securely.
Article Source:
http://EzineArticles.com/?expert=Ash_Rock_Khan
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