Businesses and companies often must grapple with the fact that container shipping costs can be expensive, especially for long-distance cargo freight.
However, not using shipping containers is unthinkable. Without these steel boxes, how else companies can keep their products safe along the way?
Also Read: Factors That Can Impact Luxury Container Home Prices
Guide to Cut Shipping Costs
Luckily, companies can avoid exceeding their budget when they need to spend on container shipping costs. Without further ado, here’s how to do it!
Plan and Book Early
While booking shipments early sounds trivial, it often does ensure shipment availability and better rates before orders start flooding in.
Late bookings, on the other hand, only result in more expensive prices due to limited options and increased demand.
If you plan before everyone does, you can choose the most cost-efficient routes, carriers, and container sizes. More importantly, early planning reduces the delay risks, last-minute fees, and penalties.
If you need an example, imagine ordering your shipment for Christmas-themed apparel three months in advance before Christmas Day.
By doing this, you can avoid the rush once it was Christmas when demand and prices skyrocketed.
Maximize Container Utilization
One often underestimated way of cutting container shipping costs is optimizing the container’s capacity to its maximum capability.
Since every inch of your container’s space counts, careful planning can help you fit more goods into each shipment.
Start by assessing your packaging. Can you shrink your packaging sizes or use space-efficient methods like stacking, nesting, or vacuum sealing?
Once you use more space-efficient packaging, you can expect to load 30% more products per container.
Should you do the maths right, this simple change led to a 25% reduction in your annual shipping expenses.
Choose the Right Container Type and Size
Not all shipments need the same container. For example, a 20-foot container is enough for most cargo types while the 40-foot variants are usable only when you need more capacity.
Alternatively, you can choose Less than Container Load (LCL) shipping if your cargo does not occupy the entire container.
With LCL shipping, you can share space with other shippers and pay only for the space you use.
On the contrary, send your cargo with the Full Container Load (FCL) shipping if you need to ship more cargo amounts.
Carriers often offer discounted rates for full containers, making FCL a better choice for businesses with high shipping volumes.
How can someone benefit from both shipping services? For example, a small company that previously relied on LCL shipping for weekly deliveries can shift to FCL by consolidating shipments into bi-weekly.
The result? A potential reduction of up to 20% in shipping costs. Quite a bargain!
Negotiate with Carriers
Negotiation skills are something you might want to pick up when you deal with carriers to get more discounts and better deals.
In this step, you should build strong relationships with your carriers and present them with data showing your shipping volumes and consistency.
These factors can work in your favor during negotiations. Don’t hesitate to shop around and compare rates from different carriers to ensure getting the best deal.
If you want to ship your cargo across long distances, it’ll be wise to negotiate with freight brokers or third-party logistics providers (3PLs).
They usually have established relationships with carriers and access to bulk discounts, which can significantly cut shipping costs.
Leverage Technology and Digital Tools
Considering how much change technology has brought to modern shipping, it’ll be a waste if you don’t use it to find the best deals.
Freight comparison platforms, for example, allow you to compare rates from multiple carriers instantly to help you make your decisions.
Additionally, digital tools can automate tasks like booking, tracking, and documentation, reducing manual errors and administrative costs.
Some platforms even provide real-time insights into alternative routes, schedules, and shipping methods that may offer savings.
How useful are these platforms for you? For example, you can easily find a carrier that offers lower rates starting at 10% for a slightly longer transit time.
What happens if you can expertly use these platforms? This adjustment can lead to thousands of dollars in savings each year.
Consolidate Shipments
If you’re shipping smaller loads frequently, you could be incurring unnecessary costs.
Consolidating your shipments into fewer, larger loads can significantly reduce your shipping expenses by minimizing the number of containers you need.
Work with freight forwarders or logistics partners to combine shipments destined for the same location.
They can help you coordinate with other shippers to fill containers and share costs.
If needed, analyze your shipping schedule to identify opportunities for consolidation. Grouping shipments can also reduce handling and administrative costs.
Be Strategic About Timing
Timing your shipments can be finicky, but it decides whether you must spend another dollar on your shipment or not.
Shipping during peak seasons like the holiday period often results in higher rates due to increased demand.
To reduce spending too much on your budget, plan your shipments during off-peak times when rates are typically lower.
Even slight adjustments to your shipping schedule can yield savings.
For example, midweek departures or early-morning schedules may be less expensive than high-demand weekend or evening slots.
Furthermore, working with suppliers and buyers can help you establish flexible delivery windows and deliver before rush seasons start.
Optimize Shipping Terms (Incoterms)
Incoterms, or International Commercial Terms, define the responsibilities of buyers and sellers in the shipping process.
The choice of Incoterms can have a significant impact on your shipping costs.
For instance, choosing Free on Board (FOB) allows you to take control of the shipping process and negotiate better rates.
On the other hand, Cost, Insurance, and Freight (CIF) places the responsibility on the seller, which may lead to higher costs for the buyer.
If you want better terms, consider consulting a logistics expert or freight forwarder to review your current Incoterms and ensure they align with your cost-saving goals.
Minimize Hidden Costs
Last but not least, extra charges like fuel surcharges, demurrage fees, and port congestion charges can quickly inflate your shipping bill.
To avoid these hidden costs, stay proactive! Monitor your container’s progress to ensure timely unloading and avoid demurrage penalties.
Choosing less congested ports or alternative routes can also help minimize delays and associated fees.
Regularly reviewing your invoices can help you spot and address unnecessary charges.
Furthermore, keep communicating with your carrier to anticipate and mitigate potential surcharges.
Also Read: Reefer Containers: Key Component of Cold Chain Industry in 2025
Conclusion
While following these guides can help you cut container shipping costs significantly, the quality of containers you use also determines the actual costs. Want some bang for your buck? Contact Tradecorp today via its quote form to find new or used containers to help you move and store precious cargo! Designed based on ISO standards, Tradecorp’s containers are guaranteed to meet your various business needs and protect them during shipment and storage.
