If you are importing products from overseas via sea freight, then cost was probably the number one reason for your choice of transport. Maritime transport is the cheapest among all other modes of transportation, especially if you consider the amount of cargo shipping freights can carry. Therefore, businesses can save money and grow their operations according to the plan. However, did you know that you can save even more? Just because sea freight is cheap doesn't mean you should settle for the cost. This article highlights tips for saving more on maritime transport.
Some businesses buy products from different suppliers. If you fall into this category, consolidating your shipments might the easiest way to save. For instance, if you are buying products from three different suppliers in three different states in the US, it is cost-effective to consolidate the products into one harbour and transport the products as a single shipment. This way, you will only pay for the freight, customs and delivery on one shipment. It is cheaper than shipping the goods individually through different harbours. However, you have to examine the geographical distance between the different suppliers. For example, if the suppliers are located in China, transporting the products from one end of the country to another is like traversing Europe. Shipment consolidation, in this case, is expensive.
Increase Your Order
You might be surprised to learn that increasing the quantity of products in your orders goes a long way in lowering the overall transportation cost. Most businesses do not know this and believe the opposite to be true. On the face of it, increasing the number of goods to ship increases the cost of shipping, but the price per unit goes down. The approach is best used for importing non-perishable commodities that can be stored in your warehouse on arrival. Therefore, rather than make orders in batches, try and order as many as possible to avoid several shipments of the same products. The lower the cost per unit, the lower the overall cost of the delivery.
Plan Your Shipments
If you buy and ship supplies on impulse, then you are always exposing yourself to price hikes. Freight companies price their services differently during certain times of the year. Therefore, you must plan your shipments carefully. For instance, maritime transport companies hike prices during the holidays to make up for lost time caused by delays and congestion in ports and harbours. Although the price hikes might seem insignificant on face value, they add up to substantial amounts over a year. Therefore, only ship your products during off-peak times if you wish to save more on maritime transport.