Freight Shipping Quotes: How They Work & 6 Ways to Cut Costs

Hey, this is Jeremy with Easy Logistics Management, and today I want to break down freight shipping quotes—how they work, when you need them, and most importantly, how to reduce your shipping costs.

If you’re shipping heavy, oversized, or palletized products, freight shipping is the best (or only) option. Consulting freight forwarders can help in obtaining accurate quotes and reducing costs. But navigating freight quotes can be confusing, so let’s dive in.

Understanding Freight Shipping

Definition of Freight Shipping

Freight shipping refers to the transportation of goods, commodities, and cargo in bulk, typically via land, sea, or air. It involves moving large quantities of goods, often in crates or on pallets, from one location to another. This method of shipping is essential for businesses that need to transport products efficiently and effectively, playing a crucial role in logistics and supply chain management. By leveraging freight shipping, companies can ensure their products reach their destinations in a timely manner, supporting the smooth operation of their supply chain.

Types of Freight Shipping Services (LTL, FTL, etc.)

Freight shipping services come in various forms, each tailored to different shipping needs:

• Less-than-Truckload (LTL) Shipping: Ideal for smaller shipments that don’t require a full truck. LTL freight shipping allows multiple shipments from different businesses to share the same truck, making it a cost-effective option for local businesses and those with smaller loads.

• Full Truckload (FTL) Shipping: Suitable for larger shipments that fill an entire truck. FTL shipping is often faster and more direct, as the truck is dedicated to a single shipment.

• Intermodal Shipping: This method uses multiple modes of transportation, such as trucks, trains, and ships, to move goods. It’s a flexible option that can optimize costs and transit times.

• Air Freight Shipping: Used for time-sensitive or high-priority shipments, air freight is the fastest way to transport goods over long distances, especially for international shipments.

• Ocean Freight Shipping: Ideal for large, bulky items or international shipments, ocean freight is a cost-effective way to move goods across the globe, albeit with longer transit times.

Each type of freight shipping service has its own advantages, making it important to choose the right one based on your specific shipping needs.

Importance of Freight Shipping in Logistics

Freight shipping is a cornerstone of logistics and supply chain management. It enables businesses to transport their products efficiently, ensuring timely delivery to customers and partners. Effective freight shipping helps manage inventory levels, reduce transportation costs, and improve overall supply chain efficiency. By optimizing freight shipping, businesses can enhance their operational performance, meet customer expectations, and maintain a competitive edge in the market.

Freight Shipping Companies vs. Parcel Shipping (FedEx, UPS, USPS)

Freight shipping is for larger, heavier shipments that can’t be handled by parcel carriers like UPS or FedEx Ground.

✅ Freight shipping is ideal for:

• Shipments over 100–150 lbs. (too heavy for a courier-style van)

• Bulky items that can’t be carried by one person with a dolly

• Shipments requiring lift gates, forklifts, or special handling

• Palletized shipments that need a forklift for loading/unloading

• Hazardous or oversized items (e.g., electric vehicles with lithium-ion batteries)

These shipments typically move via:
🚛 53-foot or 40-foot tractor trailers (not small delivery vans)
📦 LTL (Less-Than-Truckload) or FTL (Full Truckload) freight carriers

How Freight Shipping Quotes Are Calculated

Freight quotes are based on 7 key factors:

The process of obtaining a freight shipping quote involves understanding the specifics of the freight shipment, including its weight, dimensions, and distance traveled.

1. Weight: Heavier shipments cost more to transport.

2. Dimensions: Larger items take up more space and may require special handling.

3. Distance: Longer distances typically result in higher shipping costs.

4. Mode of Transport: Different modes (e.g., air, sea, land) have varying costs.

5. Type of Goods: Hazardous or perishable items may incur additional fees.

6. Delivery Speed: Expedited shipping options are more expensive.

7. Additional Services: Services like liftgate delivery or inside pickup can add to the cost.

1. Weight

🔹 The heavier the freight shipments, the higher the cost.

2. LTL Freight Shipping Class (50-500 Scale)

🔹 Based on density, fragility, and handling requirements.
🔹 The lower the class (e.g., Class 50), the cheaper the freight rate.

3. Dimensions (Size of Shipment)

🔹 Large or bulky items may trigger oversize fees.
🔹 Shipments over 8 feet typically incur extra costs.

4. Distance Traveled

🔹 Longer distances = higher freight quotes. Distance is a significant factor in determining LTL freight rates, with longer distances generally resulting in higher costs.

5. Hazardous Materials

🔹 Items like lithium-ion batteries, chemicals, or flammable materials require special handling, increasing costs.

6. Additional Services (Assessorials)

🔹 Extra services like:
✔️ Liftgate delivery
✔️ Residential delivery
✔️ Inside delivery
✔️ Appointment scheduling

Each of these services adds to the freight cost.

7. Insurance Coverage

🔹 Freight carriers provide basic liability, but for high-value items like electric surf foils or motorcycles, you’ll need extra insurance to protect against damage or loss.

8. How to Calculate Freight Density and Its Impact on Costs

Freight density is a critical factor in determining shipping costs. It is calculated by dividing the weight of the shipment by its volume. The resulting density affects the freight class, which in turn influences the shipping cost. Higher density shipments are typically less expensive to ship because they take up less space in the truck or container.

To calculate freight density, you need to know the weight and dimensions of the shipment. Use the following formula:

Density = Weight (in pounds) / Volume (in cubic feet)

For example, if a shipment weighs 100 pounds and has a volume of 10 cubic feet, its density would be:

Density = 100 pounds / 10 cubic feet = 10 pounds per cubic foot

This density is then used to determine the freight class, which impacts the shipping cost. Higher density shipments usually fall into a lower freight class, resulting in lower shipping rates. Understanding and optimizing freight density can help businesses reduce their shipping costs and improve their overall logistics efficiency.

6 Pro Tips to Cut Freight Shipping Costs

Want to save money on freight shipping? Here are the 6 best ways to reduce your freight quotes:

1. Use a Freight Broker for Bulk Discounts

Freight brokers (like us!) negotiate volume discounts with multiple carriers. Our freight management system shops rates like Expedia for shipping, helping you: ✔️ Compare multiple carriers ✔️ Secure the best possible rate✔️ Get automated freight quotes in seconds

Consolidating smaller shipments into larger LTL shipments can help secure better rates and reduce overall shipping costs.

🔹 Why it matters: Carriers specialize in different shipping lanes. Working with a broker ensures you’re matched with the most cost-effective option for each shipment.

2. Ship in Larger Quantities

🔹 The more you ship at once, the lower your cost per unit. 🔹 If possible, consolidate smaller shipments into one large load to get better LTL or FTL rates. Consolidating shipments can help achieve lower LTL shipping rates by optimizing the use of truck space and reducing the cost per unit.

💡 Example: Instead of shipping five 200-lb. pallets separately, ship them together in one 1,000-lb. LTL shipment to save money.

3. Optimize Packaging to Reduce Size & Weight

🔹 Freight quotes are partially based on density (weight per cubic foot). 🔹 Reduce unnecessary packaging to lower shipping costs. Optimizing packaging not only reduces size and weight but also makes it more efficient to ship freight, thereby lowering overall shipping costs.

💡 Example: A bulky package that takes up extra space may cost more than a heavier but compact package.

4. Negotiate Customer-Specific Carrier Tariffs

🔹 If you ship over $15,000 per month, you may qualify for carrier-specific pricing. 🔹 Custom carrier tariffs allow you to: ✔️ Reduce freight class (lower costs) ✔️ Remove accessorial fees✔️ Lock in cheaper rates for specific lanes

Working with a reputable freight shipping company can help secure custom carrier tariffs and reduce overall shipping costs.

🔹 We can integrate custom pricing into our freight management system, so you can compare your negotiated rates with broker rates for maximum savings.

5. Minimize Additional Shipping Requirements

🔹 Avoid lift gates, inside delivery, and appointment scheduling when possible. 🔹 Dock-to-dock shipping is always cheaper than residential delivery.

For larger shipments, truckload shipping can be a more cost-effective option compared to multiple smaller shipments, as it reduces the need for additional services.

💡 Example: If your business has a loading dock, you can save $75-$150 per shipment by avoiding a liftgate fee.

6. Automate Freight Quotes & Bookings

🔹 Modern freight API integrations can automate your shipping process, reducing manual work and errors.
🔹 Plug real-time freight quotes into your eCommerce store or ERP software (like NetSuite or SAP).
🔹 Benefits:
✔️ Instant freight quotes for your customers
✔️ Faster booking & tracking
✔️ Fewer logistics headaches

💡 Example: If you run an online store, customers can see accurate shipping costs at checkout, avoiding unexpected charges later.

Need Help with Freight Quotes? Let’s Talk!

Freight shipping can be complicated and expensive, but we make it simple.

✅ We handle:
✔️ Instant freight rate shopping
✔️ Carrier negotiations for lower costs
✔️ Automated freight API integrations
✔️ Customized logistics solutions

📞 Call us today: 866-854-5341 x3
📧 Email us: jeremy@easylogisticsmanagement.com
🌐 Visit us for instant freight quotes: www.easylogisticsmanagement.com

💡 Let’s streamline your shipping and cut your freight costs today! 🚛💨