Freight Shipping Costs Surge
Small businesses have been navigating as freight shipping costs surge drastically by finding deals to ship their freight at the best price.
Freight Shipping Costs Surge
The logistics industry is heavily tied to economics. Disruptions in the global economy also affect the supply chain in some capacity. Some disruptions can be positive, such as higher wages leading to higher consumer demand. However, they can also be negative, like when there’s a shortage of raw materials like wood, leading to manufacturing and delivery delays.
Significant economic disruptions can lead to freight shipping costs going up. These surges can harm businesses, as eCommerce shops and brick-and-mortar retailers rely on the freight industry to deliver manufactured products and raw materials to meet customer demands. Luckily, business owners can get around these surges by using third-party logistics providers (3PLs), who leverage their relationships with their carrier network to offer lower shipping rates.
Let’s explore some causes for the freight shipping costs surge and find out how relying on a 3PL like FreightCenter can help you find discounted rates that don’t sacrifice quality.
We provide competitive freight shipping prices and an all-inclusive, easy-to-use shipping experience for our customers. Exceeding our customers’ expectations results in thousands of satisfied customer reviews and repeat business. We believe in the power of our customer relationships. Check out FreightCenter reviews from real customers, and learn what they have to say about their freight shipping experience!
- 2021, 2017 & 2016 Food Logistics’ Top Green Providers
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- 2020 & 2019 Top Food Logistics’ 3PL & Cold Storage Provider Award
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- 2017 Green Supply Chain Award from Supply & Demand Chain Executive
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- 2012 TIA Samaritan Award Honorable Mention
- 2012, 2011 & 2010 TBBJ Fast 50 Recipient
- 2013, 2011, & 2010 Diversity Business Top Businesses
Why Choose FreightCenter for Freight Shipping?
Expertise in Freight Shipping: With over 25 years in the logistics industry, FreightCenter is dedicated to guiding you through the entire logistics process, from beginning to end. Our goal is to make freight shipping easy to understand and book. Don’t waste time researching and receiving quotes from individual carriers- FreightCenter’s got your back!
Competitive Rates with Tailored Solutions: We prioritize high-quality customer service without breaking your wallet. We utilize our relationships with regional and national carriers to offer you competitive, affordable rates while providing personalized solutions to your needs. Need a liftgate? We got you! Want to expedite your order? Leave it to us! We’re ready to provide tailored solutions that don’t compromise your freight shipment.
Personalized Customer Support: FreightCenter is committed to satisfying our customers. Our friendly customer support team is here to help you every step of the way, from initial inquiries to post-shipment concerns. We handle all aspects of logistics, including tracking, paperwork, and communication with carriers, so you can focus on your business while we manage your shipment. Choose us for our reliable service and affordable quotes!
Freight Shipping Costs Surge Causes
The cost of shipping freight increases whenever there are dramatic shifts within the logistics industry or on the global stage. But what are those disruptions, and why do they raise shipping costs?
Delays
Nothing slows the supply chain to a snail’s pace like a shipping delay. Setbacks during freight shipping can happen anytime, from the manufacturing stage to the final mile. There are multiple ways freight shipping can be delayed, including:
- Severe weather
- Malfunction in a mode of transportation (ship, train, truck, plane)
- Thefts or losses
- Human error
- Operational hiccups at terminals or warehouses
- Union strikes
When a manufacturer or carrier cannot guarantee a commodity will reach their customers in time, they will issue a delay. These delays impact a customer’s experience. Many will understand if the delays are unavoidable, but long, frequent, or preventable delays will sour the customer to the shipping company or broker, leading them to search for alternatives and hurting a business’s bottom line.
Supplies/Raw Material Shortages
It’s impossible to ship a product if it is unfinished, especially if the manufacturer runs out of critical material. Shortages are a headache for businesses trying to keep up with inventory levels. If you don’t have all the right ingredients, how can you finish your products on time? It also may take a long time for a material to resurface, causing shipping delays and dissatisfied customers.
This doesn’t just extend to manufacturing, however. Shipping containers at ports may take a long time to be unloaded from the dock, which leaves other docks and companies relying on these containers without anything to ship their products in. Companies must also pay a monthly fee for their container’s stay at a port or on a docked boat at sea, which can get hefty depending on how long it stays for.
Supplies/Raw Material Price Surge
Shortages may cause prices for those supplies to go up. However, even if raw materials and supplies are readily available for a manufacturer, they may be overpriced due to inflation or another economic circumstance. Just as freight shipping costs can increase, essential supplies can also experience surges in pricing. Some materials that have experienced price hikes in the last several years include:
- Gas/Oil
- Wood
- Steel
- Certain foods like avocados
- Processing chips
- Plastic
World Events
Lastly, emergencies significantly affect freight costs. Major world events that could affect freight shipping costs include:
- Wars
- Pandemics
- Recessions/economic crashes
- Riots and strikes
- Severe weather events
Suppliers will stop the production of materials and manufactured products to divert efforts toward immediate needs. Lower-priority items, like luxury or entertainment items, will experience delays or shortages during the emergency. Carriers will also be redirected toward transporting emergency supplies instead of their usual loads; any drivers who take on lower-priority loads will upcharge their rates as a result.
To create value for our customers by delivering customized shipping solutions that meet their unique needs and to fulfill shipping demands from simple to complex with expertise, guidance and ingenuity.
Trust the experts at FreightCenter to give you the best prices and the most comprehensive options for all your LTL freight shipping needs.
We deliver optimized solutions for full or partial truckloads and competitive dry van, flatbed, and refrigerated freight pricing. We can cover your full truckload shipping needs.
Nationwide Expedited Trucking services move your freight securely and rapidly. Your freight requires fast delivery; our freight shipping experts can get your shipment fast, whether in one large box or a full truckload.
The most reliable Specialized Freight Services rates from all the top carriers are just a few steps away. From white glove service to international shipping, we've got you covered.
How Small Businesses Save On Shipping Freight
The freight shipping market is a reactive industry. Freight carriers can’t create demand; they react to it. When the economy is strong, demand is high, capacity is low, and rates rise.
With our extensive, fully vetted carriers, we’ve got your shipping covered. Most FreightCenter customers probably didn’t even know that the freight-shipping market was going through such a rough time because we make shipping easy and affordable.
How Companies Have Saved With FreightCenter: Stump Standards Case Study
Stump Standards is a modern table and woodwork company that frequently uses FreightCenter. Our Agents help them find the best rate to ship their decorative tables. Our agents can conduct a quote for their specific shipping needs by exploring all available carriers with them in real-time. Liftgate services are a vital accessorial in generating quotes for R+L Carriers since most of their trucks come with a liftgate.
While working with Stump Standards, like all our valued customers, we go through all the accessorials they need to ensure the tables ship safely without any slipups or billing adjustments.
Shipping unique table many times can ask for more than just a liftgate accessorial on the order. These services you can add to your order are essential to mention for the most efficient quote for your shipment:
- Residential Services
- Limited Access Location
- Inside Pickup/Delivery
- White Glove Services
- Final Mile Delivery
Services needed for a shipment but not requested will end up being charged to the shipper after the shipment is complete. Avoid billing adjustments and all needed accessorials to your shipment.
When Stump Standards needs to ship their table(s) to a shop or a customer, they call one of our shipping experts to do the job correctly and affordably. At FreightCenter, we ensure all items are added to your quote correctly for the best price and outcome.
Shipping With A 3PL
One of the most common mistakes made by small businesses is to book their shipment directly through a carrier instead of using a Third-Party Logistics provider (3PL). It’s easy to understand why this mistake happens. It’s popular to believe that the best way to save money is by “cutting out the middle man.” But, in the case of shipping freight, a good 3PL will save you money every time because we ship in mass quantities, giving us better deals with the carriers we use. From there, we can help you find the most affordable freight carrier that meets your unique needs.
Strategizing For Supply Chain Disruptions
Businesses face many disruptions, but they can also take preventative measures to minimize their impact on their operations. Having these strategies on hand can also help you be prepared for freight shipping costs surges.
- Having plans in place eases disruptions to your business and shipping needs. Try using a business continuity plan, a document outlining how the company will continue operating during an unexpected event. Creating this type of plan ensures a quick bounce back to your total capacity production in the event of a tragedy.
- Expect the unexpected. A major world event may not initially affect your business, but the ripple effects could catch your team off guard. Stay informed on ways to ship during emergencies to maintain a continuous supply chain for your industry.
- Keep careful records of your inventory, supplies, and business documents. Purchase a waterproof safe or fortified cabinet to store your records in to keep them secure during severe weather events or other emergencies that could jeopardize your facilities.
- Prepare multiple communication methods for you and your team. Always be transparent about significant issues in your business and listen to your team’s suggestions for how to circumvent or push through disruptions.
- Work with a 3PL to find discounts on shipping rates. 3PLs work with carriers to lower rates and offer additional services and accessorials. Take advantage of these benefits to ship within your budget while avoiding the consequences of freight shipping costs surge.
Ship With FreightCenter to Protect Yourself from a Freight Shipping Costs Surge
The bottom line is that you want and need to keep your products in the hands of your customers. When freight shipping costs surge, keeping your product’s shipping can be confusing. You need to spend time running your business. In addition, you shorten the time searching for ways to ship your goods. That’s where partnering with a 3PL, like FreightCenter, gives you the upper hand no matter what disruption gets in your way.
We understand how critical it is for your business to run smoothly, and we are ready to help you develop a supply chain strategy that takes the guesswork out of shipping. When you’re ready to start shipping with us, use our free online quote tool or call (800) 716-7608.
Guaranteed competitive pricing every time you ship.
Frequently Asked Questions about Freight Shipping Costs Surge
Q. What do freight shipping costs surge?
The economy influences freight shipping costs. Shortages, delays, or major events can prevent manufacturers or suppliers from shipping essential commodities.
These events can also affect carriers, leading to a lack of drivers or a slower travel time that causes delays. These consequences will lead carriers and brokers to increase their rates, causing freight shipping costs to surge.
Q. How do I avoid having to pay surged freight shipping costs?
Surged freight shipping costs can be challenging to avoid when the entire logistics industry is affected, but you can find lowered shipping rates through a 3PL. By leveraging their carrier network, 3PLs can offer discounted rates for their customers, even during unprecedented events. Take advantage of these deals to prevent your business from being caught up in a freight shipping costs surge.
Three Advantages of Using FreightCenter for Freight Shipping
25+ Years of Service
We have over 25 years of experience, as evidenced by our large network of professional carriers. Our knowledgeable team of shipping experts is ready to help you optimize your shipping experience.
Customizable Shipping Options
Need a liftgate? No problem! Need to ship your products quickly? We got you covered! Our FreightCenter agents can offer tailored solutions for your specific shipping needs while offering affordable rates you can’t find anywhere else.
Friendly Customer Support
Our customer support team has the answers to many of your shipping questions and concerns. We’re here to help you through every step of the shipping process, from initial inquiries to post-shipment issues.
