Starting a business that involves freight shipping requires a solid understanding of the logistics landscape. This startup guide aims to provide you with essential insights, tips, and considerations to help you navigate the world of freight shipping. Whether you are shipping products domestically or internationally, this guide will equip you with the knowledge needed to establish an efficient and cost-effective freight shipping operation.
Understanding Freight Quotes
Before committing to a freight shipping partner, you’ll need to get several quotes from other companies and compare rates. Companies usually have different documentation requirements and processes requiring you to give accurate information when requesting a quote. However, you can generally expect the freight company to ask the following questions.
- Company name and contact information.
- Ready-by date for cargo shipments.
- Address of the shipment’s origin.
- Shipment method (Freight or air).
- Package dimensions in length, width, and height.
- Package weight.
- A number of parcels.
- Total shipment value.
There are several factors influencing the cost of the quote. The shipping distance, mode of transportation, and the size and weight of the shipment all factor into costs. Exact, firm quotes may differ between companies. However, the heavier and larger the parcel and the more distance it needs to cover, the more expensive the quote. Freight prices are volatile, with the pandemic showing how supply chain bottlenecks can dramatically affect rates and pricing models throughout the industry.
How to Calculate Shipping Costs
Depending on your partner company, your freight shipping costs can vary widely from your expectations. The basic way to estimate freight shipping costs is to get quotes from three or four carriers offering your needed services. After receiving your quotes, you can compare prices and go with the carrier offering the best value for the service. The lowest-priced carrier might not always be the best option. If you’re shipping valuable goods, you might be willing to pay more for additional security and priority delivery.
Choose the Right Freight Shipping Partner
Pricing is an important part of choosing the right shipping partner. However, as mentioned, there are other factors to consider in the bigger picture of choosing the right shipping partner for your startup. It’s a good idea to map out what you expect from a shipping partner and the services you need before settling on an account with any freight company. When picking the right freight partner for your business model, examine the following factors.
Partner with companies offering the latest in logistics technology, not old, antiquated systems. Get the partner to demonstrate the logistics and freight process stages to see how they handle shipping out goods.
What kind of transportation services does the shipping carrier offer? Will you utilize more than one delivery method to your customers?
Origins and destinations
Where is your target market, and where are you going to ship most of your parcels? Are you operating locally? Or do you need access to worldwide shipping facilities? Do you need a reverse shipping channel for your customers to initiate returns?
Some specialized products, like hazardous materials and perishables, require specialized transport and handling to prevent inventory loss. Does your logistics partner offer you different modes of transportation and guaranteed delivery of your inventory?
Continuous Learning and Adaptation
Freight shipping is an ever-evolving industry. Stay updated on industry trends, technological advancements, regulatory changes, and emerging best practices. Network with professionals, attend conferences and engage in ongoing learning to adapt to the dynamic freight shipping landscape.
Embarking on a freight shipping startup requires a solid foundation of knowledge and an adaptable mindset. By understanding the basics, selecting reliable partners, complying with regulations, optimizing costs, and embracing sustainable practices, you can establish a successful and efficient freight shipping operation. Continuously educate yourself, adapt to industry changes, and refine your processes to navigate the logistics landscape effectively.
The Junction LLC | Truckload Shipping
As a leader in the transportation industry, we demand excellence from our entire team. Our team at The Junction LLC strives to deliver the best possible customer service. We help our customers solve the toughest transportation and supply chain needs.
Our team is dedicated to serving our customers and will take the necessary action to deliver our customers’ products safely, efficiently, and on time. In fact, this is our promise to you!
Nationwide Services include:
- FTL (Full Truck Load) Shipping
- LTL (Less Than Truck Load) Shipping
- Transportation of refrigerated, dry, and bulk shipments
- 3PL Warehousing and Logistics
- Contract Warehousing
- Trucking Freight Brokerage
Trucking & Freight Shipping Services:
- Time-sensitive shipments
- LTL (Less-Than-Truckload)
- FTL (Full Truckload)
- Flatbed LTLRGN (removable gooseneck lowboy)
- RGN (removable gooseneck lowboy)
- Maxi’s / A-Train / B-Train
- Heavy Haul
- Over Dimensional
- Dry Van
- Dry Van LTL
- Refrigerated LTL
- Power Only
- Our sister companies can also provide warehousing in our food-grade facilities, cross-docking, and contract warehousing.