Cargo shipping in the Philippines continues to be costly compared to neighboring Southeast Asian countries. Recent findings show that factors such as quality of transportation, customs clearance, port charges and on-land transit contribute to the increasing cost of freight shipping. Businesses that cannot find ways to make their needed shipments cost-effective, risk losing their revenue to overwhelming expenses.
For your business to thrive, apply methods to save on cargo shipping costs. Here are 5 practical tips to start with:
5 Practical Tips to Reduce Cargo Shipping Costs for Your Business
1. Improve Storage
The first actionable step you can take is to evaluate how your goods are packaged which can help reduce the cost of shipping them. You can prevent damage and save money when you adopt the right packaging methods that will protect your shipments. This can involve choosing the proper crate or palletizing it to secure your cargo.
Consider that most shipping rates for cargo depend on its weight and dimensions, carefully allocate your shipments to maximize cost-efficiency. This can be done through consolidation of goods or “bulk shipping” which means a combination of different goods in the same container that are bound for a similar destination.
When you merge smaller shipments into larger shipments you can save money. Just be sure that your consolidated cargo is up to safety standards.
2. Plan Ahead
Once you’ve optimized cargo storage, the next best factor to consider is to plan for your shipments in-advance. Ship your priority goods at once, especially if it is time-sensitive cargo such as food or industrial chemicals. Peak seasons are usually around Christmas and the summer season so plan ahead because shipping companies are known to add peak surcharges to their rates.
It is also advisable that your business conducts a ‘demand forecast’ for your shipments. You can schedule your shipments to avoid peak surcharges through the collection of data about your goods on when and where they are needed.
If you plan to get imported goods into the country, it is best to find out about the import fees of certain products through this tool made by the Philippine government. Don’t forget to have the proper documentation and be aware of commercial label rules for goods to be sold.
3. Get Insurance
Part of a good business plan is to acquire insurance for your shipments that will provide you with financial protections against loss or damage of cargo. If something happens to your shipment, the insurance will pay you back for its value. That means you won’t have to pay for any damages out of your own pocket. You can get this insurance from either the shipping company or other insurance providers.
4. Negotiate Rates
Besides insurance for your cargo, negotiation of shipping rates can be another effective way to minimize shipment cost. Comparing different local shipping companies and whether their available services are more suitable to your business. Once you become a regular partner with the shipping company can then offer you discounted rates.
Remember that the less expensive freight option isn’t always the best choice. Find a company that can give you a fair price that doesn’t sacrifice quality and reliability.
5. Find Reliable Partners
Finding the right shipping company to handle cargo for your business can save you a lot of time and money. Having a good professional relationship with a trusted shipping line can ease your mind knowing it is in good hands.
If you’re looking for a long-term shipping partner, Starlite Ferries is one of the dominant shipping companies in the Batangas to Caticlan trade. Check our express rates and inquire about your business needs through our various offices throughout the Philippines.
ALSO READ: Reasons to Try Ferry Travel in the Philippines for Your Corporate Getaway
Cut Cargo Shipment Costs
Cargo shipping costs can add up fast, especially if you’re not finding ways to save money and make more profit. Make sure to take action to lower your shipping costs. Even small changes to how you usually do things can help you save money and make your business work better.
Adoption of practical steps like improvement of storage methods, pre-planned shipments and cargo insurance can make your business become internally efficient. But one must not underestimate the importance of negotiations and the security that comes with a reliable shipping partner. The establishment of trust between business partners can build you up and ultimately improve your bottom line.
Contact us so we can help form a partnership that will meet your business shipping needs.