With continuing evolution of the supply chain, customer expectations of fast deliveries right to their door are changing as well.

Thanks to successful models developed by Amazon and eBay, customers are not only comfortable, but prefer to shop online – especially in a compromised environment due to a pandemic.

Because of this shift in how customer’s view shipping, getting your products from A to B, or from the factory to their door is more critical than ever.

Of course your company is committed to excellence and customer satisfaction – that’s a given. Therefor, awareness of the most common shipping mistakes just might help you avoid those awkward moments when a problem does need to be explained.

Mistake #1: Listing the Wrong Address

It seems obvious enough to avoid, but it happens all the time, and at many different levels. It’s a stupid mistake that can cost you dearly and delay your shipment arriving on time.

If you list the wrong address, or if it’s entered incorrectly for you – thanks autofill, your delivery will end up at the wrong place. As a result, it’ll have to be tracked down and re-routed to the right address.

This costs time and resources in re-routing fees, missed deadlines and most unfortunately, unhappy customers.

Mistake #2: Improper Packaging

Sketchy packaging means damaged freight, which means unhappy customers and again, higher costs.

According to experts, the structural integrity of most any shipping container suffers significant break-down over the course of a single journey; and that’s for boxes that are correctly packed and sized.

When the package is NOT sized or sized correctly, the potential for damage rises exponentially. With the amount of time and care you put into creating your fantastic product, why would you risk all that work with inappropriate shipping boxes or using boxes with a sloppy fit?

Of course different products require varying amounts of care and protection, much of which depending on an item’s size, weight, and fragility.

Even with the right packaging, make sure that your goods are secured properly to their pallet: not filled with overhanging packages. Instead, column-stack or interlock-stack goods. Make sure they’re secured with stretch wrap and bands along with cushioning to increase shock absorption, strength, and stability.

A conversation with a preferred carrier will go a long way, and a little extra time is worth the cost of making sure your goods arrive intact and in good condition.

Mistake #3: Bill Of Lading (BOL) Inaccuracies

The key document required for every freight shipment – The Bill of Lading, one of the essential shipping terms to be familiar with, is a legally binding document giving both the carrier and the driver all the details to necessary to process and invoice the freight accurately.

The BOL includes:

• The date of the shipment
• The number of units in the shipment
• The exact weight of shipment
• The Shipper’s and Consignee’s full names and addresses
• The Freight classification for the items being shipped
• Type of packaging
• The declared value of goods
• A description of items being shipped: name and material of manufacture
• A Purchase Order or special account numbers used between businesses for tracking
• Special instructions for the carrier to ensure prompt delivery – such as closing times
• If necessary, a note regarding potentially hazardous materials

Considering the amount of specific information that must be documented, it’s not uncommon for shippers to use the wrong commodity description; enter the wrong piece count; notify party; or fail to read the terms and conditions of the bill of lading just to name a few.

Mistakes like these can be extremely costly and easily avoided by carefully filling out the information. Engaging the help of someone to double-check also goes a long way to ensuring its accuracy.

Going the extra mile may seem unnecessary, but you should remind yourself what’s at stake when things aren’t 100% accurate – your products, and you business’ reputation.

Mistake #4: Incorrect Weight or Freight Class Listing

Yes, it is part of the BOL, but it’s important enough to have its own listing because improperly listed freight class or weight can be a serious and costly mistake.

If you try to guess your shipment’s weight without the aid of a weigh station, you will inevitably receive additional fees – the same goes for improper freight class.

Because a lower class is associated with a lower price, shippers sometimes try to list their shipment in the lowest possible class. But if they’re incorrect, the reclassification fee will be much higher than the margin from one class to another.

This may not seem like a big deal to some, but if you’re shipping hundreds or thousands of freight loads a year, those additional fees can add up fast. Not to mention the damage it does to a reputation.

Mistake #5: No Freight Insurance

In order to cut costs, shippers may opt to avoid insurance. It may be cheaper in the short run, but the law of averages will come back to bite you.

The simple frequency of continuous shipping over time will inevitably lead to damage of one kind or another. It may be it an overturned truck, theft, natural disasters, an accident, or a host of other problems capable of ruining a shipment.

Human error has to be taken into consideration. Plus the likelihood of a mistake occurring increases with travel distance and package handling.

The relatively small price of insuring the goods saves you from worrying about the inevitable mishaps that are bound to happen over time, and save you from what could be financially crippling replacement costs of an entire shipment.

Mistake #6: Not Palletizing

Palletizing takes time and effort, but it’s far better than having a loose stack of packages free to shift around while on route and get damaged.

Furthermore, most LTL companies won’t allow you to ship without using a pallet. If you don’t, they’ll palletize your goods and pass the cost of doing so on to you. While this can be negotiable point, it’s far less expensive to do it yourself.

Mistake #7: Overpaying for Freight

This last “mistake” may seem obvious, but it’s one mistake made far too frequently.

Working with a trusted 3PL partner is one of the best ways to avoid the mistakes listed, and more, and keep your freight costs low at the same time.

An experienced 3PL partner audits your freight invoices to ensure your company is paying the correct amount for your shipments. If in case you are overpaying, they’ll work directly with your preferred carriers to provide accurate pricing, or correct other issues.

In order to understand your business’ shipping costs, and avoid eroding your profit margins, you’ll first need to know what shipping class or classes your products fall into.

The next step is to find out who you can partner with to do the heavy lifting. Professionals you can trust to provide the service you deserve and ship your goods cost-effectively.

Navigating the Uneven Sea of Trucking Rate Estimates

Unfortunately for manufacturers seeking standardized pricing, there is no single monopoly in the freight industry. While some exceptionally large branded carriers try to stifle competition to become a one-stop-shop for freighting, the shipping industry remains very diverse.

This may be due to the very regional nature of shipping. Certain companies are geared towards servicing small areas and are therefor capable of managing them meticulously.

The diversity in freight service may also be the result of the infrastructure that has evolved within the industry. Historically speaking, there was no one single ‘railway’ that made more sense than all the rest.

Today we’re left with a multilayered, multifaceted industry that can’t really answer the ‘how to estimate freight shipping costs’ question with one harmonized explanation.

While there are some consistencies that different freight providers adhere to, what you wind up estimating for your shipping costs may be subject to significant changes. This is due to broker recommendations, what a carrier may offer you, what a 3PL provider may quote you, and so on, through the various levels and types of freight services.

Still, you need a place to start, which leads many businesses inclined to ask: is there at least some kind of standard pricing system?

Start With Standardized Freight Classes

What does freight class mean?

Founded in 1956, the National Motor Freight Traffic Association (NMFTA) created a list of 18 different freight classes which serve as categories for different types of shipments.

This system is now is one of the few facets of the industry we can confidently say has been standardized. Not only are the classifications regarded as law, but they’re used as reference points for every cog in the machine.

No matter what region of the industry you’re working in, these defined classes are going to to dictate the pricing estimates for each type of shipment.

Along with these 18 different freight classes,

There also exists categories for different types of hazardous material, and a further taxonomy for cargos that are shipped LTL (less than truckload). That being said, these additional classes are somewhat rare and not often integrated.

Most importantly for the purposes of this article, every freight shipping contract must have a freight classification declaration. Hence, you have a starting point.

Freight Class Examples

How Does Freight Class Help Me Estimate My Shipping Costs?

The freight classifications set forth by the NMFTA work to negate randomness and thus promote consistent pricing across the industry.

By categorizing broad types of cargo together, it provides a shipper, carrier, or anyone between them with an idea of how much it’s going to cost to ship the materials. It also gives an idea of the degree of difficulty required to execute the shipment.

In practice, an experienced professional will recognize that a shipment in the 50 class is going  to be an inexpensive cargo like sand that fits perfectly onto a pallet. Likewise, with a freight class of 500 then the same individual will know it’s a material similar to ping pong balls and, though not nearly as heavy, be comparatively expensive to transport.

You can reason then, by knowing which class or freight classes and the details of the specific categories your products fit into, you’re one step closer to estimating the ‘general expense’ of your specific cargo.

The next question is then, how do you determine your freight classification?

Calculating a Freight Classification

Calculating the freight class of a product depends on: physicality, storability, handling, and liability.

In particular, the physicality of a product has one deciding factor that is a combination of height, width, depth, and weight measurements – and that is density.

Density is the primary key in determining any product’s freight class.

Using a combination of the above factors, a shipper can then calculate a freight class, which helps estimate their freight shipping cost. Or at the very least provide a general idea of how it’s placed within the industry.

That being said, it is advisable to have a professional assist in the calculation process. One small error can mean the difference in overpaying or paying more later.

Create a Regional Freight Grid Estimate

With the freight classification identified, you can then move forward by creating a regional grid estimate.

Although time-consuming, the result can produce an above average shipping estimate. the methodology is to research local or regional shipping solutions to gain an understanding of their prices and schedules.

The drawback is that it’s virtually impossible to calculate all the fees, extra charges and changing regulations with these ‘overt estimates’ .

Shipping Costs and Location

Location is unanimously going affect the price across the entire industry. It’s simply common sense that the further the freight has to go, the more expensive it’s going to be.

Using a Freight Broker Makes Calculating Shipping Costs Easier

Keep in mind, your time is valuable, not everything in shipping needs to be DIY to move your company forward. Considering the complex nature of the shipping landscape, hiring an industry guide makes your job that much easier.

From broker, forward, to third-party logistics company, a qualified professional should be able to evaluate your freight properly, assign the right freight class, and generate accurate shipping estimates.

These liaisons exist for this very reason; to provide accurate information to both parties and create healthy relationships between shipper and carrier.

There are plenty of ways to estimate your freight shipping costs but these liaisons exist for this very reason. They provide accurate information to both parties, create and maintain healthy relationships between shipper and carrier

Estimating Shipping Costs Efficiently

Calculating freight shipping costs and estimates using freight rates and common shipping rates can definitely be a challenge. But it is totally do-able.

Using the methods above will help provide at least a ballpark understanding of pricing, and engaging professionals can accurately generate estimates that can help you save on shipping costs.