How can you really reduce Global Logistics Expenses?

Shipping goods internationally is steadily gaining the reputation of a basic need and prices involving it are starting to rise by leaps and bounds. Needless to say, this is causing several roadblocks to startup companies and even to established ones which are losing out on their market shares. But if one thinks smartly enough one will find that there are more than a few ways to deliver goods from a starting point to its destination without hurting one’s purse heavily. Have a look at the list below and discover them yourself.

Proper initial planning

International logistics must be planned accordingly and must be done beforehand. You must always remain closely associated with your production schedule, options for shipping the goods and the basic transit time it incurs. This will ensure that you avoid all last minute hurrying which more often than not results in larger costs and missed deadlines. For the sake of adept and apt planning take into account any international holidays which could deeply influence the schedule of shipping and thus the booking availability.

Try to avoid air freight

Keep Air freight strictly as an emergency option because you know better that air freight is expensive. Yes, we do agree that sometimes situation arises when air freight becomes the only option available but try to plan ahead of your schedule and use air freight only when no other options remain useable.

Try to ship goods in FCL as much as you can

Goods shipping in FCL or Full container loads are helpful in more than one ways, the most important aspect being its cost efficiency. It is certainly friendlier to the pocket to ship global logistics in FCL than in LCL (less than a container load). Moreover, it also indicates that your goods are being loaded in accordance to your specifications and no other vendor’s goods are sharing its space. Shipping LCL may also cause damage while in transition and holdups in customs clearance due to another vendor’s goods inside your container. Although LCL also prove to be the better options sometimes, it is more preferable to make FCL your default method for global logistics shipping.

Select the 40-foot container

If you are provided with the option of choosing between a 20-foot container or 40-foot container for global logistics shipping purposes, take the wise decision and opt for the 40-foot one. That is because the 20-foot container will cost up to 75 percent of the cost of the 40-foot one and can only hold up to half the goods contained in the latter (quite obviously!). Selecting the 40-foot container will thus reduce your freight charges per piece considerably. But keep in mind though that filling up the 40-foot one will consume much more time and if you are provided with a strict timeline then avoid this advice and go for 20.

Make sure your Cargo is insured

A single mistake that can undo all the efforts you have put into securing a good shipping deal is not insuring your cargo. Check and recheck whether or not the insurance provided by your contract manufacturer is fully up-to-date and is capable of covering the whole value of your goods.  In this was you shift the responsibility for filing a claim to your contract manufacturer if anything were to happen to your cargo. It is also advisable to compare shipping rates and then choose the company which suits your expenses best.