How to Save Money on Freight Shipping as a Small Business

Shipping costs can quickly add up, especially for small businesses expanding into international markets. Limited budgets don’t have to hold you back, though. With the right strategies, you can cut freight expenses, streamline operations, and keep your business growing—all without sacrificing service quality.

Here are practical tips to help you save on freight shipping.

1. Compare Freight Shipping Options

The first order of business is choosing the right shipping method. There are plenty of options, from ocean to air freight. The right shipping option for you will depend on factors like cost, transit time, and overall reliability.

To help you choose, compare your options using freight calculators. iContainers offers online freight calculators for both air freight and ocean freight to help you estimate the cost of your shipping options.

Generally, air freight is best for faster shipments. But it’s more expensive than ocean freight. For non-urgent shipments, consider the latter.

2. Negotiate Rates with Freight Carriers

Freight charge fees aren’t set in stone. A lot of factors cause them to fluctuate, and sometimes, you may be able to negotiate better rates with freight carriers or brokers. Most providers can also offer discounts for large, bundled shipments.

The most important thing to remember is to shop around. Don’t settle for the first quote you receive. Get quotes from multiple carriers and compare prices.

3. Consolidate Shipments

You can save more money with a larger shipment than shipping multiple small cargoes separately. Make it a habit to consolidate shipments into larger loads to reduce the average freight shipping cost.

This would require some planning ahead — group orders that can be shipped together or opt for LCL ocean freight shipping to share space with other shippers.

4. Leverage Technology for Freight Management

The advent of technology has not only streamlined international shipping but has also helped cut costs. Take advantage of freight management software, including freight calculators or shipping management systems to help you find the cheapest carriers and trade lanes.

Most freight forwarders will also give you access to shipment tracking technology, allowing you to monitor your freight. That way, you can proactively work to avoid delays and additional fees.

5. Understand and Optimize Packaging

A lot of novice shippers don’t know this, but how you pack your cargo can significantly impact shipping costs. This is especially true for air freight, where weight and cargo dimensions are accounted for when calculating rates.

Avoid oversized freight charges by reducing dimensional weight and using smaller, more efficient packaging. It’s also important to have durable packaging materials to reduce the risk of damage, costly returns, or insurance claims.

6. Familiarize Yourself with Incoterms

Incoterms are international commercial terms that define the responsibilities of buyers and sellers in international shipping. A thorough understanding of these terms, and being able to choose the right one for your shipment, can go a long way in avoiding unexpected costs.

Select an Incoterm that suits your business model. Some of the most important to familiarize yourself with include:

• CIF (Cost, Insurance, and Freight)
• DDP (Delivered Duty Paid)
• EXW (Ex Works)
• FOB (Free on Board)

​​7. Schedule Shipments Strategically

The timing of your shipments can significantly impact your freight costs. Peak seasons, holidays, and high-demand periods often come with higher shipping rates, so aim to avoid shipping during these times whenever possible.

More importantly, always plan for delays. Have a reasonable lead time for your shipment so you don’t have to pay for expedited shipping services.

8. Partner with a Freight Forwarder

Shipping internationally can be a complex process, especially for small businesses with limited resources and budgets. We recommend working with a freight forwarder to help you optimize your shipments and secure better rates.

Freight forwarders are intermediaries between businesses like yours and shipping carriers. They have industry knowledge to simplify logistics and give you access to the best rates and discounts.

9. Track and Review Freight Invoices

Finally, make sure to document your shipping endeavors carefully, especially when it comes to your freight invoices. Errors like incorrect weights, duplicate chargers, or non-rendered services can lead to overpayments.

Always check for discrepancies and regularly audit your invoices to ensure you’re only paying for services you use.

Optimize Your Shipment

You don’t have to pay an arm and a leg to ship your products internationally and expand your market. You just have to familiarize yourself with the different strategies to cut shipping costs and improve efficiency.

These freight shipping tips can help you make smarter shipping decisions that will keep your budget in check.