What are the most important factors to consider when choosing a freight carrier?
Choosing a freight carrier is a crucial decision for any business that relies on transporting goods from one place to another. Freight carriers are the companies that provide the vehicles, drivers, and services to move your cargo. However, not all freight carriers are the same, and you need to consider several factors before selecting one that suits your needs and budget. In this article, we will discuss some of the most important factors to consider when choosing a freight carrier.
The first factor to consider is the type of freight you need to ship. Different freight types have different requirements, such as size, weight, shape, fragility, value, and temperature. For example, if you are shipping perishable goods, you need a carrier that can provide refrigerated trucks and fast delivery. If you are shipping hazardous materials, you need a carrier that has the proper licenses and safety protocols. You also need to check the carrier's freight classification, which determines the rate and liability of your shipment.
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Hariesh Manaadiar
Shipping & Freight Expert || Business Architect || Speaker || Trainer || Consultant || Dogfather
One of the key considerations in choosing a freight carrier should be safety.. Choose a freight carrier that prioritizes cargo safety and follows proper cargo securing protocols.. When we consider the movement of cargo by road, several forces are acting on the cargo during transport caused by the movement of the truck, the gradient of the road, the camber of the vehicle, the speed of movement, unexpected stops etc.. Your cargo can experience Gravitational force Frictional force Random Deceleration Random Acceleration Centrifugal force Vibratory force The carrier should be well aware of such movements and ensure that they follow the proper protocols to avoid any mishaps..
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Scott Lord, MBA
Logistics | Marketing | Strategy | Senior Leader | Advisor | SaaS | Product Development | Product Marketing | Product Management | UPS Alum | Sales | Innovation | Artificial Intelligence
An area to consider regarding freight type is whether your goods can/should travel via a small parcel network or via LTL. This is most often an opportunity to engage with carriers when you are shipping multiple piece shipments of a relatively uniform size (think palletized boxes). The cost vs. service trade offs can allow you to make a good business decision that meets your needs and perhaps helps your budget.
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Ivan Cortez Pela
Marinero de bahía
Segun mi experiencia ahi que iniciar si esta activo con el ruc, luego verificar si esta omologado en otras empresas y cuantos años esta actibo en el rubro, y si tiene capacidad para dar soporte en caso de emergencia o complicacion en las operaciones.
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Charlie Khoury
Logistician | PR & BD Executive | Customer Experience (CX), Marketing & Procurement collaboration
The handling service or insurance for service provision will be different depending on the prime contractors market objectives. For instance; Entering a new competing market bid to supply Bridgestone earthmover tyres in Mining from McKay to Kalgoorlie needs a high level of service in order to get a share, or with high volumes compared with market price it needs to reduce costs. Note - if the firms freight objectives are not adequate for the market, accessorial then even the best method of carrier selection won't help it succeed.
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Skyler Wang
International freight forwarder at 48LOG | Dedicated to Help Suppliers and Importers with Shipping Solutions | Freight forwarding | Transportation | Logistics
Different types of goods will be suitable for different transportation channels, and different transportation channels will have their specific billing rules. Different rules will result in different calculated prices.
The second factor to consider is the service level you expect from the carrier. Service level refers to the quality, speed, reliability, and customer service of the carrier. You need to find a carrier that can meet your deadlines, handle your freight with care, track your shipment, and communicate with you effectively. You also need to compare the rates and fees of different carriers, and see if they offer any discounts or incentives. You should also check the carrier's reputation and reviews, and see if they have any complaints or claims history.
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Erik Stroebel
Export Supply and Value Chain professional
Communication and reliability for me is very important, but also the ease of communicating and speaking to the carrier’s customer service team.
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Roger Stephan
Distributor logistics and SC platform transformation lead at Procter & Gamble
Service level for carriers is a head to head with transport type as number 1 for me. There’s no reason to contract a carrier that can’t deliver on time or deliver damaged products, … also very important while assessing carrier service is to understand their business continuity plans on different lanes specifically if they are several on forwarders.
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Scott Lord, MBA
Logistics | Marketing | Strategy | Senior Leader | Advisor | SaaS | Product Development | Product Marketing | Product Management | UPS Alum | Sales | Innovation | Artificial Intelligence
Service level is an interesting topic when evaluating carriers. Factors that impact your choice of service level include: -Origin location(s) where a more central locations allows for shorter time in transit for Ground/Economy service -Reliability of an Air vs. a Ground/Economy service based on commodities being shipped (value of goods, healthcare items for surgeries etc.) -Whether your customers receive free shipping and if there is a shopping cart hurdle (minimum order value) to qualify
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Maya Gabriel "The Disruptive Logistician"
Inspirational Leader || Logistics Professional || Freight Coach
Collaboration and trust are key factors in this game! If things go wrong I must trust you enough to help me resolve or minimize any negative impact as much as possible especially on the financial end.
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Ken Steers
KLS Logistics Consultants
You also need to know the type of product the carrier specializes in. You don't want your fragile high-tech product shipped with, say tires.
The third factor to consider is the coverage area of the carrier. Coverage area refers to the geographic regions and routes that the carrier can serve. You need to find a carrier that can deliver your freight to your desired destination, whether it is local, regional, national, or international. You also need to check the carrier's network and partnerships, and see if they have access to other modes of transportation, such as rail, air, or sea. You should also check the carrier's transit time and frequency, and see if they can accommodate your schedule and volume.
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Ken Steers
KLS Logistics Consultants
A carrier that has facilities in the top 15 cities around the country covers over 90 percent of the nation. Service is affected by choosing a carrier who owns those facilities to one who partners with other carriers.
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Johnny Jackson
Managing Director at Monjon Supply Chain Solutions Int'l
Coverage area will dictate to pricing and availability. If I have a contract load running several times a day or week on a specific lane, I will look for a carrier that is regional or local depending on the freight type. This will increase my chances of coverage and availability. If I choose a national carrier for the same load, they might have capacity, but they will more than likely cost more.
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Skyler Wang
International freight forwarder at 48LOG | Dedicated to Help Suppliers and Importers with Shipping Solutions | Freight forwarding | Transportation | Logistics
Not every agent can handle all routes of goods like some large global companies. Some agents mainly handle FCL/LCL, while others mainly rely on rail, air, or express delivery..
The fourth factor to consider is the capacity and availability of the carrier. Capacity refers to the amount of freight that the carrier can handle at a given time. Availability refers to the availability of the carrier's vehicles, drivers, and equipment. You need to find a carrier that has enough capacity and availability to meet your demand, especially during peak seasons or emergencies. You also need to check the carrier's flexibility and scalability, and see if they can adjust to your changing needs and preferences.
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Scott Lord, MBA
Logistics | Marketing | Strategy | Senior Leader | Advisor | SaaS | Product Development | Product Marketing | Product Management | UPS Alum | Sales | Innovation | Artificial Intelligence
In the current environment, small parcel carriers have fairly substantial capacity. However, the origin locations will have the most influence over the pricing to move your goods. More congested areas of the country like Chicago, NY and LA will have less capacity than others. If you are utilizing more than one distribution location this can also be to your benefit as it reduces the number of handles per package, which means a lower cost for the carriers and less damages for the shipper.
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Ken Steers
KLS Logistics Consultants
Very few people reading this should worry about the capacity of a carrier. Regardless a shipper should use at least two carriers to move their product
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Skyler Wang
International freight forwarder at 48LOG | Dedicated to Help Suppliers and Importers with Shipping Solutions | Freight forwarding | Transportation | Logistics
Every freight forwarder has their own advantageous products. As a freight forwarder, one should organize their advantageous routes and resources-- which one should provide timely feedback? Which one is cheaper? Which one can have a large amount of resources? Just like a freight forwarder who provides door-to-door services, they should provide timely delivery to customers and avoid additional costs.
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Cédric RENARD
Directeur Administratif et Financier - Gestionnaire Transport - Resp. QHSE
L'aspect réglementaire devrait être le facteur primordial ! En effet, le métier de transporteur est une profession réglementée. Des transporteurs peu scrupuleux peuvent prendre en charge du fret sans avoir la capacité d'exercice (nationales ou internationales), autorisations, ou encore les formations nécessaires à la profession pour assurer ,de prime abord, leur propre sécurité.
The fifth factor to consider is the technology and innovation of the carrier. Technology and innovation refer to the tools and systems that the carrier uses to improve their efficiency, safety, and customer satisfaction. You need to find a carrier that uses advanced technology and innovation, such as GPS tracking, online booking, electronic billing, automated alerts, and data analytics. You also need to check the carrier's compliance and security, and see if they follow the industry standards and regulations.
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Ken Steers
KLS Logistics Consultants
Today advanced technology is a value-added service that should contribute to your decision-making. For instance, does the carrier provide IT to link an EDI feed? If the carrier doesn't then keep looking.
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Skyler Wang
International freight forwarder at 48LOG | Dedicated to Help Suppliers and Importers with Shipping Solutions | Freight forwarding | Transportation | Logistics
Technological innovation and the popularization of the Internet have made freight forwarders more powerful and able to bring more convenience to customers, which is icing on the cake. However, it is not the only criterion for judgment and requires multiple considerations.
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Kaustubh Uday Marathe
Cargo Execution Lead @ Swire Shipping | Operational excellence, Change management
The right carrier can create ease and ability to manage updates, exceptions, etc. as a value-add to your business. Carriers should leverage the technology at their disposal to offer automated tracking, fast responses, and proactive efforts if and when an issue arises. Not every shipment goes perfectly, so having strong collaboration is key to overcoming any obstacles.
The sixth factor to consider is the sustainability and social responsibility of the carrier. Sustainability and social responsibility refer to the environmental and social impact of the carrier's operations. You need to find a carrier that is committed to reducing their carbon footprint, minimizing their waste, and supporting their community. You also need to check the carrier's values and mission, and see if they align with your own.
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Hardik Gupta
Engineer Mines Operation at UltraTech Cement Unit Dalla Cement Works (Working on Mines Digitalization & Sustainable Mining Operations)
When choosing a freight carrier, consider factors such as reliability, cost-effectiveness, transit time, coverage, and the carrier's track record for handling goods safely. Additionally, assess their customer service, technology capabilities, and any special services they offer.
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Patricia Afedo
Maritime, Logistics and Transport professional
We all must be socially responsible and care for our environment and so it is always best to choose carriers who endeavor to be as Green as possible and actually actively working to provide sustainable transportation services.
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Theophilus Oduleye Olaniyi
Transport | Logistics | Safety | Maritime | Seafarer | Brand Content Specialist and Designer | Influencer | Certified Drone Operator
Choosing the right carrier is very vital for end point delivery and evaluating the past output of the carrier before engaging
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