Rising shipping prices are putting pressure on businesses across every sector. But freight doesn’t have to break your budget.

If you’re looking for ways to reduce freight costs, there are smart, practical strategies you can use—without sacrificing service or speed.

Here’s where to start.

1. Consolidate Shipments

Shipping multiple small loads separately? That racks up unnecessary costs.

• Combine shipments whenever possible to move fewer, fuller loads.
• Work with carriers that offer consolidation services or shared truckloads.
• This approach cuts down on per-unit shipping fees and minimizes fuel surcharges.

Instead, use historical information to forecast demand and plan batch shipping in advance.

2. Optimize Routes and Modes

The fastest route isn’t always the cheapest.

• Evaluate every shipping lane and explore alternatives.
• Sometimes rail or intermodal transportation is more cost-effective than trucking.
• Leverage technology to automate route optimization and avoid costly delays or detours.

The goal is to find the best balance between cost, time, and reliability.

3. Negotiate Carrier Rates

If you’ve been using the same freight carrier for years without revisiting your rates, it’s time.

• Benchmark against other providers.
• Request volume discounts or loyalty-based pricing.
• Lock in contract rates when fuel costs or demand are low.

Even small adjustments in base rates or accessorial fees can lead to major savings over time.

4. Improve Freight Packaging

Oversized or inefficient packaging adds unnecessary dimensional weight charges.

• Right-size your packaging to avoid paying for unused space.
• Use stackable, uniform pallets to maximize space and prevent damage.
• Secure loads properly to avoid rejections.

Reducing freight cost isn’t just about shipping smarter—it’s about packing smarter too.

5. Use a Transportation Management System (TMS)

A TMS can streamline your entire freight operation.

• Automate carrier selection based on cost and performance.
• Gain insights into spend, delivery times, and inefficiencies.
• Identify hidden fees and opportunities for improvement.

Companies that use TMS platforms often reduce freight operational costs by up to 10–15%.

Final Thoughts

If you’re serious about reducing freight costs, start by evaluating your current logistics setup. Even one or two small changes—like optimizing routes or rethinking packaging—can lead to noticeable savings.

Freight efficiency is no longer optional. It’s essential for maintaining margins and staying competitive.

About Thomas Witt

Thomas Witt is a seasoned transportation executive with over 40 years of experience in freight operations, logistics, and consulting. As Executive Leader at JLE Industries, one of the fastest-growing transportation companies in the U.S., Witt specializes in helping businesses improve cost efficiency, reduce risk, and scale operations through smart transportation strategy. Visit Thomas Whitt’s Transportation Blog for more expert insights.