How to Get the Cheapest Shipping Rate When Shipping Internationally

Shipping internationally can be a complex and costly endeavor, but with the right strategies, you can significantly reduce your overall shipping expenses. One of the most effective ways to achieve the cheapest shipping rate is by working directly with a trucking company. In this blog, we'll explore how engaging with truckers first can help you control margins and reduce costs, and we'll also highlight other key strategies to optimize your international shipping expenses.

1. Engage with Truckers First

When shipping internationally, starting with a trucking company can be a game-changer for controlling costs. Trucking companies often have direct relationships with various service providers, including customer brokers, freight forwarders, and Non-Vessel Operating Common Carriers (NVOCCs). By working with a trucking company from the outset, you can negotiate better rates and avoid the additional margins that brokers or other intermediaries may add.

Why It Works:

• Direct Access to Pricing: Truckers can provide you with more transparent and competitive pricing because they often have established contracts and relationships with various service providers.
• Avoiding Broker Markups: Brokers typically charge a fee for their services, which can be a percentage of the total shipping cost. By working directly with truckers, you can bypass these additional charges and negotiate rates more effectively.

2. Lower Margins Through Comprehensive Service

Some trucking companies offer comprehensive services that go beyond just transportation. These companies may coordinate all aspects of the shipping process, including finding and managing other service providers like freight forwarders and NVOCCs. By doing so, they can often provide lower margins and better overall value compared to using multiple separate providers.

Why It Works:

• Streamlined Coordination: When a trucking company manages all aspects of the shipping process, it reduces the need for multiple points of contact and potential miscommunications.
• Volume Discounts: Truckers who handle various stages of the shipping process may be able to offer volume discounts and more competitive rates due to their ability to bundle services.

3. Optimize Shipping Routes and Modes

Choosing the most efficient shipping routes and modes can also contribute to cost savings. Evaluate different routes and shipping methods to find the most cost-effective options.

Tips:

• Consolidate Shipments: If possible, consolidate shipments to reduce the number of trips and leverage economies of scale.
• Flexible Timing: Adjusting your shipping schedule to avoid peak times or holidays can result in lower rates and better availability.

4. Negotiate Long-Term Contracts

If you ship internationally on a regular basis, consider negotiating long-term contracts with your trucking company or service providers. Long-term agreements often come with discounted rates and more favorable terms.

Why It Works:

• Loyalty Discounts: Providers may offer better rates and terms in exchange for a commitment to regular business.
• Predictable Costs: Long-term contracts help you manage and predict shipping costs more effectively.

5. Utilize Technology and Shipping Software

Investing in shipping software or technology can help you streamline the shipping process and identify cost-saving opportunities.

Benefits:

• Rate Comparison: Shipping software can compare rates from different providers and find the best deals.
• Automated Processes: Automation can reduce administrative costs and errors, improving overall efficiency.

6. Understand and Leverage Trade Agreements

Familiarize yourself with international trade agreements and regulations that may affect shipping costs. Certain agreements can provide reduced tariffs or other benefits that impact overall expenses.

Why It Works:

• Cost Reductions: Trade agreements can offer lower tariffs or other financial incentives.
• Regulatory Compliance: Staying informed about regulations ensures that you avoid fines or additional costs related to non-compliance.

Conclusion

Achieving the cheapest shipping rate when shipping internationally involves a combination of strategies, with working directly with trucking companies being a key factor. By bypassing intermediaries like brokers and utilizing truckers who offer comprehensive services, you can control margins and reduce overall costs. Additionally, optimizing routes, negotiating long-term contracts, leveraging technology, and understanding trade agreements can further enhance your cost-saving efforts. Implementing these strategies will help you manage your international shipping expenses more effectively and achieve significant savings.