7 Tips for Reducing Costs While Shipping Freight in Canada

Learn how to reduce one of the biggest expenses for small and medium-sized businesses

In this article, we go over some of the often-overlooked practices that can help you and your business save time and money.

Use technology to streamline the shipping process 

By using online shipping platforms such as Freightera, you can easily comparee rates from multiple carriers, track shipments in real time, and automate documentation and invoicing, all in one place.

Our user-friendly website and knowledgeable staff can help you save time and resources, and reduce errors while shipping freight.

Use less-than-truckload (LTL) shipping instead of full-truckload (FTL) 

If you only have a few pallets or boxes to ship, LTL (less than truckload) shipping is a more cost-effective option. By sharing a truck with other businesses, you share the costs and save money on shipping.

For example, shipping one pallet of 500 lbs via LTL from Toronto to Montreal would cost $146 CAD compared to $1915 CAD to ship it via FTL.

Take advantage of the benefits of rail shipping 

Freight shipping by train is often cheaper than shipping by road, and it’s usually more environmentally friendly. It can be a cost-effective and efficient option for your business if you ship heavy or bulky goods over long distances.

Use packaging and shipping optimization techniques 

Use smaller and more lightweight packaging to reduce shipping costs, and consolidating shipments from multiple locations can help you optimize shipping routes.

For example, you might want to wait with shipping single boxes until you have enough cargo for a whole pallet. Instead of sending a single pallet, consider waiting until you have a few, which might result in a better freight rate.

Get quotes (for free on Freightera) and see what gets you the best rate-to-volume ratio. 

Consider using consolidator carriers

Consolidator carriers do the same thing as warehouses which consolidate their cargo before shopping. Such freight carriers wait until they have enough cargo to fill up an entire truck before sending it out to its destination, thus saving on shipping costs.

You can look for consolidator carriers specifically on Freightera when you get your quote. They’ll generally be the cheapest option and they’ll have a note next to their name specifying that they are a consolidator. 

Consider the location of your warehouse

Having a warehouse in a strategic location can make a big difference in shipping costs and times. For example, having a warehouse closer to major shipping hubs can reduce transportation costs and transit times.

Get help from one of Freightera’s experienced freight specialists

Our freight shipping specialists can help your business find the best rates and routes for shipping goods. We have access to a wide range of carriers and we’ll find the most cost-effective and efficient options for your specific needs. 

Conclusion

By implementing these tips, you can reduce costs and improve efficiency when shipping freight in Canada. It’s important to note that the best approach will depend on the specifics of your company’s shipping needs and operations, but these tips can be a good starting point for businesses looking to improve their shipping operations.