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The Least Cost Carrier Isn’t Always the Best Choice

There are many types of shippers in the global marketplace.  Those shippers who move freight with the carriers that provide them the most convenience, and those who forego convenience and service by choosing the least cost carrier whenever possible. In order to get the most value, consider these options before choosing a carrier:

Service Level

Is the shipment time critical? What is to be gained or lost by this shipment delivering on time or late? By determining the exact service level required, the shipper will know exactly what carriers to include in the selection process. Only carriers that can delivery per the required service level should be selected.

Track Record

What is the track record of the proposed carriers? Do they deliver timely or late? Do they handle your freight with care or do they routinely delivery damaged freight? Understanding, monitoring and documenting a carrier’s performance is something that successful shippers do on a regular basis. Underperforming carriers who do not improve on these, should not be used.

Customer Service

If a shipment is absolutely needed by a certain date, do you know if the carrier provides guaranteed on-time delivery? If for any reason the pickup is missed, what is the carrier going to do to ensure on time delivery takes place? A good carrier will go the extra mile and provide the superior service that they promised without additional charges. There will always be unforeseen delays in this industry, so it is important to find carriers that will work to rectify any situation, not just the ones where they are at fault. A best in class carrier offers solutions instead of pointing out issues or delays that were not their fault.

Cost

A top notch shipper will negotiate rates or quote a specific lane ensuring that the pricing is competitive. While comparing line haul charges between carriers is easy enough, you won’t get the full picture until you take all potential charges into account.

Remember that freight companies will upcharge whenever possible. At times, if a carrier feels that the base rate they have given you is too low, they will try to make up the cost with upcharges. These could include NMFC reclassification, changing to a volume quote, or charging a reweigh fee. 

Additionally over the years LTL carriers have switched the way they go about billing for certain shipments. Each LTL carrier is different when it comes to determining if a volume quote is needed.  Knowing the specifications for each carrier is crucial for knowing that you are getting the correct pricing.

In conclusion, choosing the best carrier for each specific situation is essential. If a shipment is not critical, then the least cost carrier will usually suffice. However, when superior service is needed, freight bills will be more expensive, and it is vital to choose a carrier that will provide the level of service that is required. It is easier to spend a little more money on the front end which in turn can save money in the overall project.  

If you have questions about your rates, what you are paying, or if you are choosing the right service or carriers, please contact Allyn International at sales@allynintl.com or 239-489-9900.

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, log on to www.allynintl.com.

 

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