Optimizing Logistics Costs of International Freight 

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Written By Lauris Krams

In today’s global market, e-commerce companies constantly seek strategies to optimize logistics and reduce costs. Efficient international freight management can be the key to success. This article examines different ways to build long-term partnerships with freight forwarders such as Ursus Forwarding.

Choosing cost-effective shipping methods

Choosing the correct shipping method is essential to keep international freight costs down. Different product types and destinations require customized shipping solutions. For example, air freight is ideal for high-value, low-volume goods for faster delivery. In contrast, sea freight is cheaper for perishable bulk goods.

These suggestions could help you make the right decision:

  • Analyze the type and destination of the cargo to determine the most appropriate transport option.
  • Remember about factors such as speed of delivery, cost, and product safety.
  • Take note: if perishable goods are shipped to more distant locations, air freight ensures product safety despite higher costs.

Freight consolidation

Cargo pooling can significantly reduce logistics costs. By consolidating smaller shipments into larger ones, companies can benefit from reduced prices and improved efficiency.

Here are tips that can help you optimize your international freight forwarding:

  • Group shipments bound for the same destination.
  • Use LCL (Less than Container Load) transportation for smaller volumes.
  • Take note: grouping several small orders in one container can lead to significant savings in sea freight costs.
freight forwarding

Understanding freight rate structures

To optimize costs, it is vital to understand the freight charging structure and keep track of discount offers. Knowledge of pricing helps to negotiate better deals and avoid hidden fees.

Understanding payments and checking regular freight discounts can help you save money, so look into the following nuances:

  • Learn about fees like fuel surcharges, handling fees, and customs duties.
  • Inquire about volume discounts for frequent shipments.
  • Note: scrutinize invoices to ensure all charges are justified and aligned with industry standards.

Leveraging volume discounts

Obtaining discounts for large volumes is an effective way to reduce freight costs. Regular, high-volume shipments can lead to a significant increase in low-cost offers.

Stick to these points to negotiate a competitive discount on your high-volume orders with your freight forwarder:

  • Negotiate better rates with the freight company for regular, large shipments.
  • Keep track of changes in shipment volumes to remain eligible for discounts.
  • Tip: negotiate a monthly shipment volume that qualifies for a discount with the freight forwarder.
partnership with freight forwarder

Establishing long-term partnerships

An ongoing partnership with a freight forwarder can ensure better pricing and continued quality of service. 

The following suggestions may help you to build a strong partnership with an international freight forwarder:

  • Choose a reliable company with many years of experience.
  • Build mutual trust and understanding to develop a fruitful long-term relationship.
  • Long-term cooperation offers ongoing logistical support and benefits such as tailor-made solutions and priority service.

Ursus Forwarding’s efficiency in freight forwarding

This Latvian-based logistics services company is a successful example of an international freight partner. The company offers a wide range of services and focuses on customer-oriented solutions.

It is ideal for e-commerce companies looking to optimize their logistics. The company provides freight transport by road, sea, air and rail. It also efficiently handles bulky goods, reducing costs and freight transportation time.

In conclusion

By following these strategies and making the right choices, e-merchants can significantly reduce logistics costs without compromising efficiency and reliability. A deep understanding of this and close relationships with carriers are critical to success in a competitive global market. Read also about the impact of fuel prices on international shipping tariffs