In business, one of the areas where companies are constantly trying to control costs is the cost of transportation and shipping. It is imperative to be aware of the different shipping methods available to be competitive in today’s market. Direct freight is a great way to control costs, also known as freight rates or pricing.
In the freight forwarding business, the terminology “Rate” and “Price” basically mean the same thing. The rate is determined by the quantity or weight of the cargo being shipped, the quality or risk of the cargo, and the contracts negotiated. Obviously, how far and how much a company ships would affect the price of shipping; however, with LTL shipping, the product being shipped is also important. In LTL cargo, if a product is highly fragile or dangerous or requires special attention, the shipping rate will be directly affected. For these reasons, finding a shipping company that is a better fit for the individual company shipping your products is a must to keep costs under control. One way to do this is by using direct upload services.
Direct freight is a method of linking customers who need their products shipped to drivers and shipping companies willing to transport their materials at very good rates. There are websites designed that will make it easy for companies to match up with carriers. The company that wishes to move their cargo can join the site to list their cargo. They enter specific details, such as what types of goods are being shipped, how much, and the destination of the shipment. While many trucking companies prefer to ship full truckloads, there are many that ship LTL. LTL shipping can save small businesses the expense of packing a full truckload shipment to transport their freight.
Drivers and trucking companies looking to pick up loads can also join these dropshipping freight sites. They pay a nominal fee to gain access to a database that shows the cargo available for shipment. They can provide information about your particular company, your team, and your drivers. The trucking company then essentially makes an offer or agreement with the manufacturer on the shipping details of their items. Customers who need to ship their cargo can decide which trucking company offers the services and equipment they need.
Loads as small as a pallet up to and including 35,000 tons can be posted. This service is very valuable because it encourages competition. When companies compete, price savings are often achieved. Another benefit of this service is that a company does not have to pay to ship a full truckload if they do not have as much inventory to move. They can also examine the shipping company and decide which company offers them the services and prices they need.
Likewise, trucking companies can manage their loads and optimize their profits by coordinating shipments. With an increasingly competitive environment, transportation companies use various methods to remain competitive. Not to mention, the higher cost of fuel means that every mile matters to the trucking company.
Understanding freight rates is only half the battle in making shipping profitable for any business. The other factor is being able to benefit from competition between shipping companies. Customers in need of trucking services can easily list their cargo and then receive an acceptable offer or lower cost when using LTL shipping. The same service also greatly benefits many trucking companies because they can see what cargo is available and where it needs to go. Direct freight services are a valuable asset in helping both carriers and truckers achieve their goals