Strategies to reduce freight transportation costs

strategies-to-reduce-freight-transportation-costs

Transportation costs have risen, according to information provided by the United Nations Conference on Trade and Development (UNCTAD). This situation not only negatively affects transport companies, but also the final consumer, who has experienced increases of more than 1.5% due to the changes after the pandemic and the current military conflict between Russia and Ukraine.

According to the information shared by this international organization, an increase of up to 10.6% in the cost of imports is expected. This requires the implementation of a series of measures to mitigate these effects and ensure the stability of logistics operations.

 

Strategies to reduce transport costs in the logistics sector

In order to reduce transportation costs and continue to maintain logistics operations at normal levels without affecting customer satisfaction or others involved in delivery processes, we have listed some recommendations that we trust will safeguard good continuity in this type of business.

  • Improve transport route planning.

Proper planning of the most convenient routes is the first key point to reduce transportation costs. For this, it is necessary to have the advice of experts in the field and also with the implementation of technological tools that provide a broad vision on the most beneficial choice of a route, considering the cost of fuel, the safety status of the route and other factors adapted to the type of merchandise to be transported.

  • Avoid cargo underutilization in each shipment.

Although it seems a mistake of the past, there are still cases in which a carrier does not completely fill the necessary cargo space, either due to lack of advice or poor organization of the parcel inside the container. To avoid repetitive and unnecessary trips, it is advisable to use third-party software and services that ensure maximum efficiency during cargo consolidation.

  • Reduce the number of transport vehicles.

Sometimes, it will be necessary to reduce the fleet destined for the transport of goods, as long as this does not affect the operational capacity of the company in question. This measure will provide significant benefits, such as decreased fuel expenses and better organization of the driver team. In addition, fewer trips will be required to complete each delivery.

  • Implement technological tools

Hardware and software-based technology is crucial to increase efficiency and reduce transportation costs. Tools such as GPS location, systems to measure the proper weight of each truck and contingency response plans during the route are essential to ensure timely customer service and avoid economic losses due to delays or other setbacks.

 

In addition to these recommendations to reduce transport costs, we remind you that at ONUS Insurance we have the best experts in logistics security issues, aimed at minimizing any administrative or material eventuality that may affect your merchandise during daily operations. In addition, we focus on keeping your brand highly competitive, ensuring an optimal customer experience.

 

Sources:

Incremento de costos en el transporte marítimo de mercancías. The Logistics World

4 formas de reducir los costos de transporte de logística. PVT Group

Consejos para reducir los costes de transporte. Transeop

 

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