Are You Paying More Than You Should Be?

Let’s face it—shipping is expensive. Whether you’re moving pallets across the country or fulfilling orders directly to customers, the costs add up fast. Many direct shippers don’t realize how much wiggle room there actually is in their shipping budgets.

Have you ever paused to wonder, “Are we leaving money on the table?” You’re not alone. With inflation, supply chain snags, and increasing fuel surcharges, cutting shipping costs without sacrificing service can feel like walking a tightrope.

But here’s the good news: it doesn’t have to be that way. With a few smart tweaks and strategies, direct shippers can shave thousands off their freight spend. Let’s break down the top 10 ways to do just that—without cutting corners.

1. Negotiate Smarter Carrier Contracts

You’d be surprised how many businesses accept the first quote that comes their way. Carriers expect negotiation, and your shipping volume gives you leverage.

Tips to negotiate effectively:

• Benchmark rates using tools like Freightos or DAT Freight & Analytics.
• Ask for discounts based on shipment volume or lanes.
• Lock in fuel surcharge caps.

According to FreightWaves, companies that regularly renegotiate contracts can save up to 18% annually.

2. Consolidate Shipments Whenever Possible

Think of consolidation like buying in bulk. Instead of sending multiple smaller shipments, group orders going to similar regions into one larger load.

Benefits include:

• Lower per-unit shipping rates
• Fewer accessorial charges
• Reduced environmental impact

A study from the Journal of Business Logistics found shipment consolidation could reduce freight costs by 10–20%.

3. Leverage Zone Skipping

Zone skipping is a clever logistics hack where you ship parcels in bulk closer to their final destination before handing them off to local carriers. It bypasses multiple shipping zones, which means fewer fees.

This tactic is especially useful for e-commerce brands or regional distributors. Major players like Amazon use it every day.

4. Invest in Better Packaging

It might seem minor, but your packaging could be inflating your shipping expenses. Dimensional weight pricing means carriers charge based on size as much as weight.

Fix it with:

• Custom-sized boxes
• Lighter materials
• Automated packing machines to reduce void fill

UPS offers packaging audits, and many companies discover they’re paying more for air than for products.

5. Use a Transportation Management System (TMS)

A TMS is like a personal assistant for your shipping operations. It automates routing, tracks shipments, and highlights inefficiencies.

According to Logistics Management, businesses using a TMS report an average of 8% in savings annually.

Popular TMS platforms:

• MercuryGate
• Oracle Transportation Management
• SAP TM

6. Take Advantage of Freight Class Optimization

Freight class (in LTL shipping) significantly affects cost. If your freight is misclassified, you’re probably overpaying.

What you can do:

• Reassess your products’ density and packaging.
• Work with a freight auditor or 3PL to reclassify.
• File a reclassification appeal if needed.

NMFTA guidelines often change, so staying up to date is crucial.

7. Use Regional Carriers Strategically

National carriers are convenient, but not always cost-effective. Regional carriers often offer lower rates, faster delivery times, and better service for certain zones.

Why regional may be better:

• Lower operating overhead
• More flexible delivery schedules
• Higher on-time performance in specific regions

Don’t overlook them—they could be the secret weapon in your logistics arsenal.

8. Audit Your Invoices Regularly

Billing mistakes happen more often than you’d think. Whether it’s duplicate charges, incorrect accessorials, or wrong freight classes, audits can catch expensive errors.

How to audit efficiently:

• Use automated freight audit software like AuditShipment
• Review carrier performance reports
• Challenge any discrepancies within 30 days

Inbound Logistics reports that shippers who audit invoices save up to 6% annually.

9. Plan Shipments Around Off-Peak Times

Just like flying off-season is cheaper, shipping during non-peak periods can also lower your costs. Carriers adjust rates based on demand.

Smart timing strategies:

• Avoid end-of-month rushes
• Ship mid-week when lanes are less congested
• Book in advance when possible

The Journal of Transport Economics and Policy notes a 5–8% cost difference during off-peak schedules.

10. Partner With a 3PL or Freight Broker

Third-party logistics providers have existing relationships and rate agreements you can tap into. They can also help streamline warehousing, distribution, and returns.

Benefits of 3PL partnerships:

• Access to better carrier rates
• Reduced administrative burden
• Improved delivery performance metrics

According to Forbes, businesses that work with 3PLs often report a 10–20% decrease in logistics costs.

Conclusion: Small Tweaks, Big Savings

Cutting shipping costs doesn’t mean compromising quality. It means being strategic. When you look at your freight operations through a critical lens—contract terms, packaging, timing, and tech—you’ll spot savings hiding in plain sight.

Start small. Choose 2 or 3 tactics from this list and implement them. Once you see results, keep going. Lowering shipping expenses isn’t a one-time fix; it’s a continuous optimization journey.

Need help auditing your current shipping setup? Reach out to a logistics consultant or TMS provider to see what opportunities you might be missing.

FAQs About Lowering Shipping Expenses for Direct Shippers

1. What is the fastest way to reduce shipping costs?

Start by negotiating your carrier contracts. It requires no operational changes and can yield quick savings.

2. How does packaging affect shipping rates?

Carriers often use dimensional weight, so even light packages can cost more if they’re large. Streamlining your packaging can lower costs significantly.

3. Are freight brokers really worth it?

Yes, especially for smaller businesses. Brokers often have access to lower rates and more flexible shipping options.

4. Can I combine LTL shipments with other companies?

Yes, some 3PLs and freight consolidators offer shared loads for similar routes, reducing per-pallet shipping costs.

5. What is a TMS and do I need one?

A Transportation Management System helps you manage, track, and optimize shipping. While not mandatory, it can uncover savings and streamline operations.